FIN240 Exam 1 Mindtap Quizzes (First 15 Questions Ch12)

D

AJ agrees to buy Harry's pickup truck so he can pull his trailer. Both AJ and Harry believe that the truck is big enough to do the job. However, after they complete the deal, AJ finds that the truck is not strong enough to handle the trailer. The contract between AJ and Harry can be rescinded because of: a. a beveled mistake. b. a unilateral mistake. c. an allowable mistake. d. a mutual mistake.

A

Amjed sues Larry, a landowner on whose property Amjed was injured. Larry believes that Craig is a lawyer and hires Craig to defend him in the lawsuit. Craig is not a lawyer, so the contract between Larry and Craig: a. will not be enforced. b. will be enforced only if Craig wins. c. will be enforced despite Craig's winning or losing of the case. d. will be enforced unless Craig loses the case.

D

A case involving a contract with multiple third-party beneficiaries is brought to court. In determining which third-party beneficiaries are intended, and which are incidental beneficiaries, the court is likely to apply the: a. substantial performer rule. b. beneficiary test. c. fairness and equality rule. d. reasonable person test.

A

A judge ruled that Ron was mentally incompetent, placed him in a hospital, and appointed a guardian. Ron escaped from the hospital and purchased a recreational vehicle. In this situation: a. Ron's contract was void from the start. b. Ron has a valid contract. c. Ron cannot avoid the contract as long as he had sufficient funds to pay for the vehicle. d. Ron can avoid the contract only if the salesperson knew he was mentally ill.

B

Daniel enters into a contract that requires him to pay interest at a rate greater than the legal state maximum. The contract might be enforceable if: a. Daniel is a minor. b. the loan is for a small amount and Daniel would not be able to obtain a loan otherwise. c. Daniel's guardian entered into the contract for him. d. the contract is reasonable.

B

Dawn's stepson Tony tells her that he is going to lock her in a closet for a week unless she gives him a check for $20,000. Dawn is old and feeble. If she gives Tony the check and then has second thoughts about having done so, she can: a. seek to avoid the contract on the basis of undue influence. b. seek to avoid the contract on the basis of duress. c. reclaim the money, as it was a gift; there was no consideration. d. claim that she was defrauded.

B

Diana tells Crystal, "I think I'll sell that camping gear I bought for hiking the Pacific Trail for $250. I'm never going to make that trip." This constitutes: a. a valid offer. b. a statement of future intent. c. a counteroffer. d. an agreement to agree.

D

Dillon struggles with his Algebra class and, in August, decides that he needs to get a tutor for the upcoming school year. He persuades Vonda to tutor him beginning in September. They discuss Vonda's fee and hours, and agree that the arrangement will last for the entire school year, ending in May. Under the Statute of Frauds, this contract: a. must be in writing based on the one-year rule. b. must be in writing because it is collateral. c. must be in writing under the Uniform Commercial Code (UCC). d. does not need to be in writing.

D

Donald buys a subscription to a national magazine that gives him two years for the price of one year. After the two years expire, Donald continues to receive the magazine for six more months, although he has not subscribed again. The magazine then sends Donald a bill for the magazines he received after the expiration of his subscription. Donald: a. owes the full amount. b. can be fined for failing to return the magazines. c. owes half of the bill. d. owes nothing.

B

An inmate escapes from the county prison. There is a $500 reward offered for any information leading to the capture of the inmate. The county sheriff sees the inmate at a local restaurant and calls the department headquarters before arresting the inmate. The sheriff: a. can expect to collect the $500 because he called the department headquarters before arresting the inmate. b. cannot expect to collect the $500 because he had a preexisting duty to arrest the inmate. c. cannot expect to collect the $500 because of the doctrine of unforeseen difficulties. d. can expect to collect the $500 because he performed a civil service.

D

Antonio owns property on which a gasoline station once stood. Josh agrees to buy the land so that he can build an office on it. They include language in the contract making the purchase contingent on a determination that there are no environmental problems with the property. The contingency represents: a. a concurrent condition. b. a condition subsequent. c. an implied condition. d. a condition precedent.

D

Asa has a contract with Phil to provide fortune-telling services at Phil's daughter's birthday party. Phil's daughter decides she does not want to have a fortune teller at her birthday party, so Phil tries to assign the right to Asa's services to his neighbor Steve. Steve: a. can enforce the contract with Asa because Phil has assigned the rights to him. b. can enforce the contract with Asa only if there is written documentation of Phil assigning the rights to Steve. c. can enforce the contract with Asa only if he pays double the originally agreed-upon price. d. cannot enforce the contract with Asa because rights to receive personal services cannot be assigned.

A

Austin has a contract to sell 500 homemade teddy bears to Ally. The teddy bears typically sell for between $25 and $40. Austin delivers the bears to Ally but she refuses to pay, saying she changed her mind and that the contract is not valid because it is missing the price term. Did the price need to be specified in order for this contract to be valid? a. No, price need not be included in a contract for the sale of goods under the UCC, so long as the quantity is specified. b. Yes, price is an essential term, so its absence in the writing invalidates the contract. c. Yes, price is the most important term in a contract for the sale of goods under the UCC, so it must be specified in this contract. d. No, price is not an essential term in any contract.

C

Doris, an eighty-seven-year-old widow, collapsed while shopping at a store. She was taken to the Detroit city hospital by ambulance. She stayed there for fourteen days and was then transferred to another hospital, where she later died. She never regained consciousness. After she died, the hospitals and the ambulance company sued her estate to recover their expenses. Will Doris's estate be held liable for the medical bills? a. No, because there was no quasi contract. b. Yes, because there was an actual contract. c. Yes, because there was a quasi contract. d. No, because she could not have entered a contract while she was unconscious.

A

Douglas and Audrey promise to buy their twenty-year-old son, Max, a car when he turns twenty, provided he studies at least one hour every day during the school year. Max's best friends, Hayden and Jasmin, are very excited about the new car, and Max has told them that they can ride with him all over town once he gets it. Max fulfills his end of the bargain, but Douglas and Audrey change their mind and do not buy the car. Max, Hayden, and Jasmin all sue Douglas and Audrey for breach of contract. What is likely true? a. Max will win, but Hayden and Jasmin will not. b. Max, Hayden, and Jasmin will lose. c. Hayden and Jasmin will win, but Max will not. d. Max, Hayden, and Jasmin will win.

A

Judge Macy has reviewed a contract between Martin and Rowan and has determined that the written terms of the contract represent the final agreement between the two parties. According to Judge Macy, their contract is: a. an integrated contract. b. an incomplete contract. c. a prenuptial contract. d. a parol contract.

A

Judy has the duty under a contract to pick up trash from Marc's front yard. Ricky owes Judy a favor, so she delegates her duty under the contract to him. It is a valid delegation. Marc: a. cannot refuse to let Ricky pick up the trash. b. can refuse to let Ricky pick up the trash, and then charge Judy a fee for trying to delegate the duty. c. can refuse to let Ricky pick up the trash and insist that Judy do it. d. can refuse to let Ricky pick up the trash and demand that Judy delegate to someone else.

D

Julia promises to give Mary a piece of original artwork worth $5,000 in return for Mary's stamp collection, which is worth $500. After the exchange, Julia decides that she does not think the bargain was fair and demands that Mary give her back the painting. A court will most likely: a. force Mary to return the painting because even though the consideration was legally sufficient, there was too great a discrepancy in the value of the goods for the exchange to be considered fair. b. force Mary to return the painting, because the consideration was not legally sufficient. c. force Mary to pay Julia $4500 to make the exchange fair. d. not interfere with the contract, because the consideration is legally sufficient.

A

Julius asks Rachel if she would like to sell her boat. Rachel privately has no interest in selling her boat and believes that Julius can't afford her boat anyway. Rachel says, "I'd sell my boat to you for $20,000." To Rachel's surprise, Julius responds "Ok, it's a deal." Rachel does not want to sell the boat to Julius for any price. Julius and Rachel have: a. formed a valid contract because Rachel's outward expressions showed the formation of a contract. b. not formed a valid contract because Rachel did not want to sell the boat for any price. c. not formed a valid contract because of lack of definiteness in the contract terms. d. formed a valid contract because Julius expressed outward interest in the boat.

A

Justin is a fourteen-year-old music star. His father, who also serves as his agent, tells Justin that if he wants to continue to live in the family's home and be a part of the family, he should sign over fifty percent of his income to the father. Justin, who does not want to be homeless or without a family at his young age, agrees and signs the contract, giving his father fifty percent of the income. This is an example of: a. undue influence. b. fraudulent misrepresentation. c. mistake. d. duress.

C

KJ Games, a company in Colorado, designs computer games that it markets and sells to customers via the Internet. A click-on agreement accompanies every download; no game can be installed on a buyer's computer if the buyer does not click on the words "I agree" when prompted. The click-on agreement clearly states in capital letters that all disputes will be settled in Colorado's state courts. Buyers of KJ's games are most likely: a. required to arbitrate any disputes in Colorado. b. not required to file their lawsuits in Colorado. c. required to file any lawsuits in Colorado. d. not required to accept this term of the contract.

D

Kandis offers to pay Tim's way through college if he will kill her ex-boyfriend. He accepts Kandis's offer, signing a contract. Their contract is: a. executed. b. voidable. c. formal. d. void.

D

Karl buys a new Volkswagen and signs a contract with Volkswagen saying that he will never sue the company for any personal injuries he may receive as a result of a faulty car. In exchange, Volkswagen reduces the price of the automobile by $6,500. This type of contract provision is: a. a liquidated damages clause. b. a dormant commerce clause. c. a revisionary clause. d. an exculpatory clause.

B

Kathy wants to buy a house at least 2,500 square feet in size. She looks at Pat's house. Pat honestly and reasonably believes the house has 2,600 square feet of floor space, and he tells her that. Kathy agrees to buy the house. When the house is measured, she learns that it has 2,400 square feet of floor space. Kathy can seek to rescind the contract on the basis of Pat's: a. unilateral mistake. b. innocent misrepresentation. c. mutual mistake. d. fraudulent misrepresentation.

C

Keisha contracts with a broker to invest all of her savings. The year goes badly, and she loses almost all the money. She is too ill to return to work and will be penniless if she cannot avoid the contract. Which of the following applies? a. She can appeal to her governor for clemency. b. She can avoid the contract based on the general gambling rule. c. She has no legal recourse. d. She can avoid the contract because stock market transactions are against public policy.

D

Kelly tells Matthew that she will sell him one of her motorcycles at some time in the future. Matthew eagerly accepts. Do they have a valid contract? a. Definitely not, because the offeree did not accept the offer. b. Probably, because Kelly failed to communicate the offer to the offeree. c. Probably, because the parties knew what they were discussing. d. Probably not, because the terms are not definite.

D

Kenneth's parents own a cattle ranch. When they became too elderly to run the ranch by themselves, Kenneth moved back to the ranch to help them. With his parents' help and permission, Kenneth builds a house on the ranch. After he builds it, his parents refuse to deed him the land. Kenneth can sue his parents under the doctrine of: a. unfair accord. b. satisfaction. c. covenant not to sue. d. promissory estoppel.

D

Marcy owns a trucking company that hauls goods all over the country. Wilson contracts with Marcy's company to transport ten tractor-trailer loads of goods from Ohio to Texas. After delivery of the goods, Marcy learns that all the goods had been stolen when her company took possession of them. The contract: a. is unenforceable and Marcy's company is now liable for the stolen goods. b. is unenforceable unless Marcy's company can return the goods. c. is unenforceable because the goods had been stolen and Marcy's company cannot collect its fee. d. is enforceable because Marcy's company was justifiably ignorant of the fact that the goods had been stolen.

B

Margaret applies for a position as a bank manager. On the application there is a section that asks if the applicant has any history of criminal charges involving money. In the past, Margaret faced embezzlement charges, but she does not disclose this to the bank in her application. If the bank hires Margaret and then finds out about her history: a. Margaret will be able to keep her job, but will have to pay the bank a fine. b. the bank will be able to rescind the employment contract based on intent to deceive. c. Margaret will be arrested and sent to jail. d. the bank will not be able to rescind the employment contract based on intent to deceive.

B

Margaret signs a contract to purchase a new car, and on the back side of the agreement in fine print too small to read, Margaret agrees to waive her right to a jury trial and submit to mandatory arbitration, with Margaret paying all of the costs of arbitration in the event of a dispute. Margaret files suit over the condition of the vehicle, and the dealer files a motion to compel arbitration. The court will likely: a. enforce the mandatory arbitration provision. b. refuse to enforce the mandatory arbitration provision. c. require Margaret to pay all of the costs of arbitration. d. allow Margaret to return the vehicle to the dealer in return for the monies paid to the dealer.

A

Marie contracts to buy coffee beans for her store from Owen. The contract price is $5.00 per pound. Owen breaches the contract and delivers no coffee. Marie's damages will be: a. the difference between the market price of the coffee and the contract price. b. the difference between the contract price on the coffee and the profits that Marie may have made selling the coffee. c. the amount Owen can afford to pay. d. the amount she seeks.

D

Nicole has a contract to buy fourteen cases of hammers from Tyler. Tyler breaches the contract. Even though she can get similar hammers somewhere else, Nicole wants to sell his hammers because she secretly likes his logo and thinks it will draw customers in to her store. If she sues for specific performance, will she win? a. Yes, because he breached the contract and can be made to deliver the hammers. b. No, because Tyler does not want to give her the hammers. c. Yes, because she likes his logo and cannot get that logo somewhere else. d. No, because she can get similar hammers elsewhere.

C

One afternoon, after a couple of beers, Steven says that because Marvin has been a helpful neighbor, he can have a right-of-way to drive across Steven's land to get to a fishing pond. Two weeks later, while Marvin is driving across Steven's land, he hears Steven yelling, "Get off my property, you trespasser!" Marvin has: a. a valid oral contract. b. avoidable oral contract. c. no enforceable contract. d. a contract that is void because trespassing is illegal.

A

Patricia drives to her favorite gas station and tells the attendant to fill her tank. The attendant asks Patricia what grade she wants, and she tells him, "Regular." The attendant fills the tank. At this point, the contract between the station and Patricia is: a. executory. b. void. c. unenforceable. d. executed.

C

Patrick agrees to pay Anna $25,000 in exchange for Anna taking Patrick's hazardous waste and surreptitiously dumping it on the property of a competitor. After Anna dumps the waste, Patrick refuses to pay. This contract will: a. be enforced because both parties agreed to the contract and will be held accountable to its terms. b. be unenforceable due to usury laws. c. be void from the outset and thus unenforceable. d. be enforced because it has sufficient consideration and is a bargained-for exchange.

D

Patrick hires Bryan, a well-known artist, to paint a mural on the wall of Patrick's restaurant. After signing the contract, Bryan calls Patrick and tells him that he is too busy to do it. Patrick wants one of Bryan's murals on the wall, so he sues for specific performance. A court will: a. grant specific performance because painting is a mechanical act. b. grant specific performance because Bryan's murals are unique. c. not grant specific performance because a mural will not enhance the restaurant's profitability. d. not grant specific performance because it is a personal service.

A

Paul goes to a bar, has seven shots of whiskey, and then goes to an electronics store and buys a $2,500 stereo system. If he later wants to avoid the contract based on his intoxication when he made the purchase, he will need to prove that: a. he lacked the mental capacity to enter into the contract. b. the store clerk knew he was intoxicated. c. his capacity to act would be classified as "legally unstable." d. a reasonable person would have known that he was intoxicated.

A

Philip receives a mail-order catalogue featuring a new style of water shoes that look perfect for river kayaking. He calls to order a pair and is told that the shoes are sold out. Philip can now: a. try somewhere else; the catalogue did not make an effective offer. b. sue because the catalogue listing constituted a valid offer. c. sue because the catalogue company improperly revoked its offer. d. sue for breach of contract.

A

Print Quik, Inc., seeks punitive damages in a lawsuit against Reddy Supply Company. Generally, punitive damages may be recovered when a contract has been breached: a. when the breaching party's actions also constitute a tort. b. only if the contract involved the sale of goods or the sale of land. c. in no circumstances. d. in almost all cases.

B

Putnam Corporation makes a sleeping pill that is legally sold in the United States. Putnam has a contract with a chain of pharmacies to provide 4,800 cases of the sleeping pill for retail sale. One month after the contract is signed, but before any pills have been delivered, the Food and Drug Administration passes regulations that make it illegal to buy or sell the drug because it is highly addictive and has caused high levels of abuse, as well as a few deaths. Can the pharmacy chain get out of the contract? a. Yes, because performance may lead to unethical results. b. Yes, because the government's actions make it impossible to perform. c. No, because the law has no impact on the legality of the contract. d. No, because the law did make it impossible to perform, it simply increased the consequences of performance.

A

Rebecca owns a vacant lot. For years, it has produced nothing but weeds, which she has struggled to keep mowed. She has considered selling it, but it has decreased in value over the years, and she does not want to sell it at a loss. Lou owns the adjoining parcel of land and announced his intention to build a shopping center on the land. This would cause Rebecca's land to triple in value. Lou now says that he may not build the shopping center, and Rebecca threatens to sue if he does not go ahead with his original plans. In this situation, Rebecca is: a. an incidental beneficiary. b. a creditor beneficiary. c. a donee beneficiary. d. a vested beneficiary.

C

Rena contracts with Darryl to buy two horses. They agree that she will pay $2,000 for each horse. When they draw up the contract, the sales price is inadvertently changed to read $40,000 rather than $4,000. They can seek the remedy of: a. novation. b. recovery based on quasi contract. c. reformation. d. restitution.

D

RexCo and Wilkinson Motors agree to a contract online. Both companies agree to an encryption security procedure to verify changes in electronic documents and correct errors. RexCo sends a message to Wilkinson Motors that contains an error because RexCo's information-processing system erroneously changed the language of the document. Wilkinson Motors will: a. be required to renegotiate the terms of the message. b. be able to sue RexCo for fraud. c. have to comply with the erroneous submission. d. be able to avoid the effect of the error.

A

Rick agrees to buy twenty acres of land from Tina. Three weeks before the deal is to close, Rick calls Tina and says: "The deal is off!" In this situation, Rick's actions constitute: a. anticipatory repudiation of the contract. b. substantial performance of the contract. c. a reformation of the contract. d. a discharge of the contract by novation.

C

Robert, who lives in Ohio, files a lawsuit against Trading Post, a Washington company, in an Ohio state court. The Trading Post's only sales activity outside the state of Washington occurs via its Web site. According to the sliding-scale standard, the Ohio court can always exercise personal jurisdiction over out-of-state defendants based on Internet transactions if the court finds that the defendant has: a. received a national trademark and domain name for its Web site b. commercial cyber presence c. conducted substantial business with Ohio residents through its Web site d. interacted with at least three Ohio residents through its Web site

C

Rudy and his publisher require Katherine's expertise in writing a chapter of a book that will be published under Rudy's name. They sign a contract in which Katherine agrees to write the chapter. If Katherine then delegates her obligation to write the chapter to Dana, the delegation: a. is not a delegation at all; it is an assignment. b. will be allowed based on the doctrine of alienation. c. will probably not be effective, because the duty involved personal services. d. will probably be effective, even though the duty involved personal services.

C

Ryan sends Michael a letter of intent for the purchase of a tract of land. The letter of intent outlines the purchase price, the legal description, and the financing terms. A paragraph is included that states this is a non-binding agreement and is an offer to enter into negotiations. a. The letter of intent is an expression of opinion and does not indicate an intention to enter into a binding agreement. b. The letter of intent is a statement of a future intent, which is not an offer. c. The letter of intent is an invitation to negotiate, which is not an offer. d. The letter of intent is an offer that may be accepted by Michael.

C

Sadie contracted with Sean, who agreed to replace the carpets in her house. Sean damaged some of the walls when he installed the carpets. Sadie did not pursue a claim against Sean for his defective performance of the contract. Sadie's actions are known as: a. an exculpatory clause. b. a breach. c. a waiver of breach. d. a penalty.

B

Samantha, a famous artist, has a contract with Alec to paint his portrait for $6,000. Samantha is very busy and wants to delegate her duty to complete the painting to Patty, her top student and a very talented artist. If Alec objects, a court likely will: a. not honor the delegation because, as a general rule, delegations are not allowed. b. not honor the delegation because the contract is based on personal skill. c. honor the delegation because, as a general rule, delegations are allowed. d. honor the delegation, only if the delegation was in writing.

A

Sandy guarantees to pay Lester any debts Albert incurs with Lester. Sandy makes this guarantee because she knows that if she does not, Albert will run up a large debt with Lester and be forced to declare bankruptcy. Albert would then most likely be unable to pay Sandy what he owes her. Does this contract have to be in writing? a. No, under the main purpose rule. b. No, under the nuptial rule. c. Yes, under the first-definer rule. d. Yes, under the evidentiary rule.

D

Sarah tells Jake that she is thinking about buying a car. Jake replies that he would like to sell Sarah one of his cars in a few weeks for a really good price. Jake has made: a. a valid offer to Sarah. b. a valid counteroffer to Sarah's offer. c. a statement that is not a valid offer for lack of communication. d. a statement that is not a valid offer for lack of definiteness.

D

Sayed and Ann form a contract under which Sayed agrees to sell Ann 500 copies of a book. The contract price is $3.50 per book. Sayed breaches the contract by not delivering the books to Ann by the deadline. At the time of the breach, the books are available from the publisher for $4.50 each. Ann's damages are: a. $1,650. b. $1,275. c. $750. d. $500.

C

Shaina hires Kieran to take her senior pictures and touch them up "subject to Shaina's satisfaction." Kieran takes the pictures and touches them up, but Shaina is legitimately unhappy with the work. Shaina: a. has to pay Kieran for the work if the work would satisfy a reasonable person. b. has to pay Kieran for the work because Kieran completed the work and "approval" clauses are illegal. c. does not have to pay Kieran for the work. d. does not have to pay Kieran for the work because the contract is void.

C

Shaina hires Kieran to take her senior pictures and touch them up "subject to Shaina's satisfaction." Kieran takes the pictures and touches them up. Shaina is legitimately happy with the work, but spent the money she was going to use for the pictures on other things, and claims that she is not happy with the work. If there is evidence of this, Shaina: a. does not have to pay Kieran for the work. b. does not have to pay Kieran for the work because the contract is void. c. has to pay Kieran for the work if the work would satisfy a reasonable person. d. has to pay Kieran for the work because Kieran completed the work and "approval" clauses are illegal.

C

Shane and Diego have a signed contract for Shane to sell Diego some property in the mountains. Shane decides that he does not want to sell the property. Diego also decides that he does not want to buy the property. They meet to discuss it and agree, in writing, to rescind the contract. The rescission: a. is not valid because rescissions must be oral. b. is not valid because land deals cannot be rescinded. c. is supported by the promises not to enforce the original contract. d. must have additional consideration in order to be valid.

B

Shane is the manager of the Twinkle Toy Store. Kate is his best employee. Shane tells Kate: "You've been doing a great job lately. If I like what you do over the next two months, I'll give you a $1,000 bonus." This is: a. valid consideration. b. an illusory promise. c. an accord and satisfaction. d. a requirements contract.

D

Sheryl and Davis agree that before they marry, they should have a prenuptial agreement to determine what will happen to Sheryl's fortune if they divorce or if Sheryl dies. To make their agreement valid, they must: a. do nothing. Because they will be married, their agreements are automatically valid. b. file it with a circuit court. c. have it approved by an outside mediator. d. put it in writing.

C

Sierra offers to sell Alyssa a Scottish terrier puppy for $800. Alyssa and Sierra do not discuss the dog's ancestry, but Alyssa believes that the dog came from champion lines and agrees to the price. Alyssa later discovers that the puppy is worth only $200. Can Alyssa rescind the contract based on her mistake? a. Yes, because Alyssa had a duty to investigate, which she failed to perform. b. Probably so, because Alyssa made a mistake about a material fact. c. Probably not, because Alyssa made a mistake about the dog's value, not a mistake about a material fact. d. Yes, because the dog was clearly not worth $800.

C

Sophie buys a tropical bird from Henry's bird store, which Henry says, "Is extremely rare." Sophie asks if the bird is on the endangered species list. Henry knows it is on the list, but he tells her it is not. Government officials later tell Sophie that she purchased a bird that individuals may not own, the bird is confiscated, and she is fined for possessing it. To recover the price of the bird and the cost of fines, Sophie can sue Henry for: a. undue influence. b. mistake, which allows the contract to be rescinded. c. fraudulent misrepresentation. d. negligence.

C

Stan, a citizen of Iowa, files a lawsuit in an Iowa state trial court against Jalisco Farm Supply, a Texas company that sells supplies in Iowa. The court has original jurisdiction because: a. the court has concurrent jurisdiction b. the court has venue c. the case is being heard for the first time d. the parties have diversity of citizenship

C

Susan is extremely wealthy and has two daughters. She plans to split her estate equally between them when she dies. The older daughter, Mary, becomes Susan's sole caretaker when Susan begins to develop dementia. A few days before Susan dies, Mary convinces her to sell the home and property to Mary for a few hundred dollars so that the younger sister, Jane, gets nothing. Jane can claim that the contract between Susan and Mary is voidable based on: a. misrepresentation by silence. b. fraudulent misrepresentation. c. undue influence. d. misrepresentation by conduct.

D

Tiffany owns a health club and contracts to buy a set of weights from Dylan for $10,000. Dylan is hurting financially, so he changes the dollar amount on the contract to $18,000. Before delivering the weights, Dylan attempts to collect the $18,000 from Tiffany, who accuses him of trying to cheat her. She has a copy of the contract with the original amount. When they end up in court, the court likely: a. will not enforce the contract because there is a disagreement about the dollar amount. b. will enforce the contract for $18,000. c. will enforce the contract for the original dollar amount. d. will not enforce the contract at all because of the change made by Dylan.

B

Tina decides to take her claim against her Internet service provider to FairDeal.com, a private, online dispute resolution provider. This limits her access to the court system: a. only as to this claim b. not at all c. for a period of sixty days d. entirely, as to this and all other claims against her Internet service provider

B

To celebrate his seventeenth birthday, Alan buys a new computer. Two weeks later, his parents insist that he return it. Alan's attempt to return the computer will be: a. successful, if he pays a fine. b. successful, because he has acted within a reasonable time. c. unsuccessful, because he has waited too long. d. unsuccessful unless he gets court approval.

C

To download software for his Internet connection, Nelson had to click on several boxes at the Web site that stated "I agree" or "I accept." Nelson did not read the accompanying text before clicking on the boxes. In the event of a dispute between Nelson and the service provider, the contract terms will: a. not be enforced. b. be enforced only if the service provider shows that Nelson read them. c. be considered the terms of a binding contract. d. become proposals for the terms of a binding contract.

A

Tom agrees to hire Dave as a consultant at a salary of $3,000 a month. Tom reserves the right to cancel the contract at any time. Before Dave begins his consultant job, Tom cancels the contract with Dave and hires Stanley. Tom can: a. cancel the contract because it is illusory. b. not cancel the contract because there is sufficient consideration. c. cancel the contract because of a preexisting duty. d. not cancel the contract because Tom and Dave have agreed on terms.

B

Toybox, Inc., manufactures the Spintop, a toy that the company has discovered can cause harm. Before anyone is injured, Anne, a pediatric nurse who has not purchased a Spintop, files a suit against Toybox. In seeking to have the suit dismissed, Toybox's best argument is that Anne does not have: a. jurisdiction b. standing to sue c. certiorari d. judicial review

C

Transpac Corp. and Alliance, Inc., agree to a contract that includes an arbitration clause. After a dispute arises, the case goes to arbitration. The arbitrator finds in Transpac's favor. Alliance files a lawsuit, alleging that the award should not be enforced because the arbitrator made an error in her findings of fact. The court will likely: a. review the sufficiency of the award b. review the merits of the dispute c. do nothing d. set aside the arbitrator's award

C

U.S. Bank enters into a new contract with Risk Management Services, Inc. (RMS), to conduct UCC searches. RMS adds a provision to the contract that states: "RMS's liability is limited to the amount of fee paid for each service provided under this contract." RMS generally charges $25 per UCC search conducted. The first search conducted by RMS for U.S. Bank does not find a UCC lien, but causes U.S. Bank a $1,000,000 loss. U.S. Bank claims that the provision added by RMS is ambiguous. In this scenario, a court would apply which of the following rules of interpretation? a. Look to the express terms of the contract. b. Look to the parties' course of dealing. c. Look to custom usage and trade. d. Look to the parties' course of performance.

A

Valerie contracts with Esteban, who agrees to build a stone retaining wall and drain on her property. The wall and drain are necessary to prevent erosion of her land, which is falling into the creek on her property at a rapid rate. If Esteban breaches the contract, Valerie is under a legal obligation to: a. mitigate her damages. b. not take any action, because she is the innocent party and thus has no legal duties. c. absorb all of the costs associated with the property erosion caused by Esteban's breach. d. wait until Esteban is prepared to build the wall and drain.

D

Vicky contracts with Cyrus to have him remodel her kitchen. Vicky, however, changes her mind and breaches the contract before Cyrus can begin work. As a remedy for the breach, Cyrus can seek: a. the contract price, plus interest. b. nothing, because the breach occurred before he began performance. c. the entire contract price. d. expected profits from the contract.

D

Vince owes Colton $140,000 under a previous contract. Vince does not have the money but does own property worth approximately $140,000. Colton agrees to accept the property instead of the money and Vince transfers the property to him. The transfer is called: a. a rescission. b. a novation. c. an accord. d. a satisfaction.

C

Vince owes Colton $140,000 under a previous contract. Vince does not have the money, but does own property worth approximately $140,000. Colton agrees to accept the property instead of the money. This is: a. a satisfaction. b. a rescission. c. an accord. d. a novation.

C

Western Widget Co., Karelia Manufacturing Inc., and Johnson Industries Co. all enter into a contract to not recruit each other's employees, and to set coordinated prices for their products sold in the U.S. market for the next three years. This contract is: a. enforceable because it is not unconscionable against one or more of the parties. b. unenforceable because it involves an agreement between businesses. c. unenforceable because it is a restraint of trade. d. enforceable because it is not illegal.

D

Westin wants to borrow $1,000 from Missy to help pay his deposit at his new apartment. Missy says she will agree to lend him the money, only if Westin promises to repay her within six months and if Westin's friend, Betty, promises to pay if Westin fails to do so. If Betty agrees to the arrangement, Betty's promise is called a: a. limited promise. b. unified promise. c. mutual promise. d. collateral promise.

D

Wilbur decides to sell his collection of rare stamps through an online auction site. When he is filling out the information about his collection, he types $40 instead of $400 in the minimum price box. Wilbur does not notice his mistake until after the auction is over and someone has purchased his stamp collection for $75. Wilbur: a. can claim he was defrauded. b. can rescind the contract because he made a unilateral mistake. c. can rescind the contract because the stamps are worth much more than $75. d. cannot rescind the contract based on his unilateral mistake.

D

Xavier is an engineer who specializes in computer-aided design. Xavier visits a Web site and purchases computer-aided design software through the site's online store. Xavier clicks on-screen "I agree" boxes indicating agreement with the contract terms. In obtaining the software, Xavier has most likely obtained: a. joint partnership with the software company. b. ownership of the software. c. the right to pass title to the software to another. d. a license to use a single copy of the software.

C

John is a resident of Iowa. While driving through California, he is in an accident involving Marisol, a California resident. Marisol files a lawsuit in a California state court. Over John, the California court has: a. Diversity jurisdiction b. In rem jurisdiction c. in personam jurisdiction d. no jurisdiction

B

Beaux is discussing with Brad the purpose of the statute of frauds enacted in all states, and tells him the purpose of the law is to: a. prevent fraud relating to certain contracts. b. prevent enforcement of certain contracts that are not in writing. c. prevent a party to a contract from testifying at trial. d. prevent the enforcement of contracts that are not signed by all parties.

C

Bill and Henry sign a contract for Bill to build a house for Henry by December 20. On December 20, the house is complete with the exception of the crown molding around the living room ceiling and a final coat of interior paint. In the meantime, Henry has decided that he does not want a new home. He tells Bill that Bill has breached the contract and Henry no longer is obligated to perform. Is Henry correct? a. Yes, because Bill can always sell the home to someone else after it is finished. b. Yes, because Bill breached the contract by not having the home completed on time. c. No, because Bill substantially performed. d. No, because Bill perfectly performed.

C

Bill and Mary sign a contract where Bill is going to deliver 400 pairs of shoes to Mary's warehouse by noon on Tuesday. The contract states that the shoes will come on 4 wooden pallets. Bill knows that the shoes will come on 4 metal pallets. Mary's warehouse is full of goods on both wooden and metal pallets. Mary decides she does not want the shoes and sues Bill as a means to rescind the contract based on fraudulent misrepresentation. What is the outcome? a. Bill wins because Mary failed to underline the wooden pallet language in the contract. b. Mary wins because Bill knowingly signed a contract containing an inaccurate and untrue statement. c. Bill wins because even though he knew he was misstating the type of pallet, it was not a material fact. d. Mary wins because wooden pallets were listed in the contract.

C

Bradley is sitting on his porch enjoying his very large front yard and drinking a lemonade when Chris, a kid from down the street, shows up and starts mowing Bradley's yard. Bradley waves and smiles. Chris is mowing the lawn for money, but Bradley doesn't know it (and shouldn't know it because their two families often do nice things for each other without pay). Chris may be able to recover money from the courts on the basis of: a. a bilateral contract. b. an implied contract. c. a quasi contract. d. an express contract.

D

Brian wants to buy a mare which he can breed to help develop a horse-breeding operation. Larson offers to sell Brian a horse which he believes is healthy, and should make a good broodmare when a little older. After two years, the horse has not yet foaled. The veterinarian tells Brian that the horse is incapable of breeding. If Brian sues to rescind the contract with Larson, it is: a. likely that a court will allow the rescission based on a unilateral mistake. b. unlikely that a court will allow rescission, because Brian made a mistake about market value. c. unlikely that a court will allow rescission based on a mistake of fact. d. likely that a court will allow the rescission based on a mistake of fact.

B

John makes an offer. Jane justifiably relies on that offer to her detriment by beginning performance. John cannot revoke his offer any longer because of: a. voidability of estoppel. b. promissory estoppel. c. a lapse of time. d. an option.

D

Cal-Ban 3000 was a weight-loss drug made by Health Care, a Florida corporation. Tart, a citizen of North Carolina, read ads for the product in a newspaper and bought Cal-Ban in North Carolina from a local pharmacy. Within a week of taking the supplement, Tart suffered a ruptured colon. Alleging that the injury was caused by Cal-Ban, Tart sued Health Care in a North Carolina state court. Health Care asked the court to dismiss the case, arguing that the North Carolina court could not exercise personal jurisdiction over Health Care. The court most likely: a. refused to dismiss the case, because it was not fair to make Tart travel to Florida for trial. b. dismissed the case because the dispute should be tried in a federal court, given that the defendant and the plaintiff were from different states. c. dismissed the case because North Carolina did not have personal jurisdiction over the defendant, so Tart would have to sue in the Florida courts. d. refused to dismiss the case, because the defendant had placed the product in the stream of commerce in North Carolina and was subject to being sued in North Carolina.

A

Carmen contracted with Miles, who agreed to replace the carpets in her house. A clause in the contract provides that the only remedy for breach is replacement, repair, or refund of the purchase price. This type of provision in a contract is known as: a. a limitation-of-liability clause. b. a breach clause. c. an exculpatory clause. d. a penalty clause.

C

Carmen owns a 2009 Toyota Camry that has been driven 24,000 miles and, to his knowledge, has no mechanical problems. He offers to sell the car to his friend Jamie for $12,000. Jamie accepts Carmen's offer. Jamie and Carmen have: a. a quasi contract. b. an executed contract. c. an express contract. d. an implied contract.

B

Carol Rogers, a local millionaire, promises to donate $500,000 to the Springfield Humane Society. This money will be used to build a new animal hospital. Based on Carol's promise, the society begins work on the hospital. Carol then backs out of her offer. a. Carol will suffer from a bad conscience, but not from any lawsuit. b. Carol can be sued for the money under a theory of promissory estoppel. c. Nothing can be done. Carol's donation was a gift. Promised gifts do not have to be delivered. d. Carol has violated the terms of a quasi in rem contract.

C

Carol's car was hit while it was parked. Carol calls A-1 Towing, tells the dispatcher that the car needs to be towed, and gives her location. Carol never mentions a price and leaves before the tow truck arrives, so she does not talk with the driver or sign any documents. Carol: a. does not owe the company for towing her car because she did not know that she would have to pay. b. does not owe the company for towing her car because she did not have a chance to reject its services. c. owes the company for towing her car under an implied contract. d. owes the company for towing her car under an express contract.

D

Cathy promises to buy Mark's car for $2,000. Cathy is: a. an officer. b. an offeree. c. a promisee. d. a promisor.

C

Charles loses his breach-of-contract case against Micheletta in a Georgia state trial court. Charles appeals to the state court of appeals. Losing again, he files his next appeal with: a. a U.S. Circuit Court of Appeals b. the United States Supreme Court c. the Georgia Supreme Court d. a U.S. district court

C

Chloe buys a product from Good Times, Inc., that includes a shrink-wrap agreement. After using the product, she decides it is defective and sues Good Times. If the court determines that Chloe learned of the shrink-wrap terms after the contract was finalized, it may conclude that the terms were proposals for additional terms, which then: a. automatically made the contract void. b. were not a part of the contract because Good Times had not expressly agreed to them. c. were not a part of the contract unless Chloe expressly agreed to them. d. automatically became part of the contract.

C

Craig was trying to sell his sick dog to Lisa. The dog's illness was not detectable from simply looking at, or playing with, the dog. Craig provided Lisa with documentation that showed the dog had received its required shots and had been to the veterinarian on a regular basis for checkups, but he did not mention the illness. Lisa bought the dog, who died two weeks later. Lisa sued for fraudulent misrepresentation. Who wins? a. Lisa wins, because there is an implied warranty on the sale of any animal and its death that soon triggers that warranty. b. Craig wins, because the illness was not a material fact. c. Lisa wins, because Craig committed fraudulent misrepresentation by hiding the illness. d. Craig wins, because there is no duty to provide information.

A

Drew and Bella bought a large lot with two homes on it, one for them and one for Bella's aging mother, Lynette. They hire an interior designer to redecorate the homes. In the contract, they refer to the second home as "Lynette's home" and state that the interior design of the home is exclusively Lynette's decision. Lynette does not sign the contract, but does send lovely thank-you notes two weeks later to the interior designer and to Drew and Bella. Lynette: a. is an intended third-party beneficiary whose rights vested when she sent the thank-you note. b. is an intended third-party beneficiary whose rights will vest when the designer meets with her to discuss plans. c. is an intended third-party beneficiary whose rights vested when the contract was signed. d. is an incidental third-party beneficiary without rights.

B

Dustin's father, Forrest, enters into a life insurance contract that gives Dustin $75,000 when Forrest dies. Dustin is: a. an assignor. b. an intended third party beneficiary. c. a delegator. d. a substantial performer.

D

Egbert, who is sixteen years old, purchases a $500 video game system and a $50 computer chair from CompuStore. Egbert changes his mind and wants to avoid the contract for the video game system but not the computer chair. Egbert may: a. disaffirm part of the contract for the video game system as he wishes. b. disaffirm only the computer chair because it is incidental to the contract. c. may not disaffirm the contract because it is for necessaries. d. only disaffirm the entire contract.

B

Elisa truly believes that she is a space alien from the planet Zelnor. She walks into a car dealership and buys a new Volkswagen Jetta, telling the salesperson that she needs a sample of Earthling transportation to beam back to her home planet. If Elisa wants the option to avoid her contract later, she must: a. prove that a court had judged her to be mentally incompetent previously. b. prove that she lacked adequate mental capacity when she bought the car. c. prove that the car dealership did not take adequate precautions to prevent sales to mentally disturbed individuals. d. prove that the salesperson talked her into buying the car.

C

Elise enters into a contract to purchase JD's house and then changes her mind. JD sues her for breach of contract. The lawsuit for a breach of contract will be governed by: a. state statute. b. agency regulations. c. the common law of contracts. d. the Uniform Commercial Code (UCC).

B

Eric and Chelsea sign a contract where Eric will sell his used car to Chelsea for $400. That night, Chelsea's parents surprise her with a new car. Chelsea's friend, Andrea, needs a new car. Andrea, Chelsea, and Eric sit down the next day and cross off Chelsea's name on the contract and write in Andrea's name. All three of the parties initial the changes. This is: a. a satisfaction. b. a novation. c. a rescission. d. an accord.

D

Exilware designs software, which it frequently sells to Avertron, the maker of hardware systems. Exilware is in New Hampshire, and Avertron is in Arizona. Because the companies often conduct business via the Internet, they have formed a partnering agreement. When a dispute arises over a delivery date, the court will probably: a. consider the partnering agreement only if its terms are in strict compliance with the Uniform Electronic Transactions Act (UETA). b. consider only those portions of the partnering agreement that are fair to both parties. c. disregard the terms of their partnering agreement. d. look to the terms of the partnering agreement to determine each party's intent.

D

Expect Big Things Company and ABC Data are in a state that has enacted a modified version of the Uniform Electronic Transaction Act (UETA). The act passed by their state contains a procedure for the acceptance of electronic signatures that differs slightly from the one provided by the federal Electronic Signatures in Global and National Commerce (E-SIGN) Act. If the two companies form an e-contract using an e-signature procedure that complies with the state's version of UETA, their signatures will be: a. invalid under the E-SIGN Act because any modification is preemption of federal law, which is unconstitutional. b. valid only under state law. c. valid because states are allowed to preempt the E-SIGN Act if they wish. d. valid only if the state's procedures are consistent with the E-SIGN Act, and the state's law does not give greater legal effect to one type of technology.

C

Ferris owns an apartment in an apartment complex. The apartment complex rules require the owner of each apartment to keep it in reasonable condition, and they stipulate that failure to do so is grounds for action against the owner by the apartment complex or a tenant. Erica rents Ferris' apartment. During her first year of renting, many appliances in the apartment break, and there are repeated incidents of leaking through the roof. Ferris does nothing to fix the apartment. Erica sues Ferris, who claims he has no contractual duty to Erica. A court will likely find that: a. Erica is a contractual beneficiary, therefore Ferris has a contractual obligation to her. b. Erica is a donee beneficiary, therefore Ferris has a contractual obligation to her. c. Erica is a creditor beneficiary, therefore Ferris has a contractual obligation to her. d. Erica is an incidental beneficiary, therefore Ferris has a contractual obligation to her.

C

Francisco is driving his car when he collides with Wyatt's car. Francisco writes Wyatt a letter in which he offers to pay Wyatt $5,000 if Wyatt will agree to forfeit all of his rights to pursue a lawsuit against Francisco for this accident. If Wyatt agrees and signs the letter, they will have a: a. delimited accord. b. covenant not to sue. c. release. d. concerted satisfaction.

A

Frank owes Anderson $500. Frank is the obligor. Anderson, as the obligee, assigns the right to receive the $500 to his daughter Jemma. Jemma is now: a. the assignee and can enforce the contract against Frank. b. the obligor and can enforce the contract against Anderson. c. the obligor and can enforce the contract against Frank. d. the assignor and cannot enforce the contract against Frank.

C

Garth purchases a boat from a boat manufacturer in another state. The sales contract contains all terms of the sale in great detail and at the end has the statement: "This agreement contains the entire agreement of the parties." If Garth later discovers a problem with the boat and sues for breach of contract, evidence extraneous to the contract: a. will be allowed in court because Garth purchased the boat out of state. b. will be allowed in court because the contract was not a fully integrated contract. c. will not be allowed in court because the contract was a fully integrated contract. d. will be allowed in court because the contract was a fully integrated contract.

A

GavelCo Insurance sells an insurance policy to Barry in the state of Colorado. GavelCo violates a Colorado state statute when doing so. Later, Barry gets into a dispute with GavelCo over coverage under the insurance policy and wants to enforce the contract. The insurance contract will be: a. enforceable by Barry, the purchaser, and he can recover from the insurer if applicable. b. unenforceable. c. enforceable by both parties just as any other contract. d. enforceable, but only if a court finds the contract unconscionable.

A

George is a minor who lives on his own. He orders clothing from FastShop. George later wants to disaffirm the contract. George can: a. disaffirm the contract, but must pay for the reasonable value of the goods. b. disaffirm the contract and keep the clothing without payment because he is a minor. c. not disaffirm the contract. d. disaffirm the contract because this contract is unconscionable.

A

Gerald goes to a used car lot to buy a car. The salesman tells Gerald that these are "the very best cars in town for this price." Gerald buys a car for $6,500. Two weeks later, Gerald sees a much better car in a different car sales lot for $5,500. The salesman's pitch to Gerald: a. was not an example of fraudulent misrepresentation. b. was an example of fraudulent misrepresentation. c. was an example of misrepresentation by silence. d. was an example of misrepresentation by conduct.

C

Gmiendl, Inc., a German company, and Bordeaux Enterprises Co., a French company, verbally agree to a contract for the purchase and sale of plastic bottles. Assume both France and Germany are signatories to the CISG. Is the contract valid? a. No, because the contract violates the Statute of Frauds and requires a writing. b. No, because the contract requires a signature from each party whenever a multinational contract is formed. c. Yes, because the CISG does not require contracts for sale to be concluded or evidenced by writing. d. Yes, because the parties are from two different nations and no contract law applies.

B

Heather agrees to work for Noah for one year in his law office. Noah writes an employment contract that states that Heather is to earn $20 per hour and to work forty hours per week. Noah terminates Heather's employment after six months. Heather sues to recover what she claims are her losses. At trial, both parties discover that the contract says that Heather's hourly wage is $0.20 per hour. What can Heather and Noah do about the error? a. They can ask the court to rewrite the contract. b. They can offer parol evidence to clarify the clerical error. c. They can offer evidence of the consideration that supported their contract. d. They are bound by the writing under the Statute of Frauds.

D

Heather is sixteen but looks much older. She goes into a jewelry store and buys a diamond bracelet with the money she has been saving for college. If Heather realizes a year later that it was unwise to spend the money on the bracelet, she: a. can return the bracelet, but she will only get 50 percent of what she paid for it. b. can disaffirm this contract only if she has turned eighteen. c. cannot return the bracelet, because she has kept it too long. d. can return the bracelet and get her money back.

C

Helping Hands, Inc., wants to repair its aging roof and hot water heater but lacks the funds to do so. Members of the charity publicize a call for donations to fund the necessary repairs. James is a long-time supporter and pledges $30,000 to the charity for this purpose. James pledges because he believes in the mission of the organization. Relying on James's pledge, the charity enters into construction and hiring contracts to begin work. When six months later Irene, the CEO of the charity, asks James for the donation, James declines to provide it. In this case, Helping Hands: a. cannot enforce James's pledge because it lacks sufficient consideration. b. cannot enforce James's pledge because the statute of limitations has expired. c. can enforce James's pledge on the grounds of promissory estoppel based on a charitable subscription. d. can enforce James's pledge because James and Helping Hands agreed on a gift.

A

If Juan is buying a tract of land from Ken, in which of the following ways would the legal description NOT be considered part of the contract? a. The legal description is written on a separate piece of paper and mailed separately from the contract. b. The legal description is written in the contract itself. c. The legal description is written on a separate piece of paper not attached to the contract, but in the same envelope. d. The legal description is written on a separate piece of paper and attached to the contract with a paper clip.

A

Jack and Scotty begin negotiations where Scotty will give Jack hockey lessons for a certain amount of money per week. While they are still negotiating the dollar amount and the number of lessons, they begin to meet weekly to have lessons. After ten lessons, Jack tells Scotty that it is clear that they are not going to be able to agree on the number of lessons or the dollar amount, so he will not participate any more. If Scotty sues Jack, the court will: a. award Scotty a reasonable amount for the lessons he already taught. b. award Scotty specific performance to make Jack finish the series of lessons agreed to. c. award Scotty nothing because there is no contract. d. award Scotty the reasonable value of a reasonable length of a contract for this type of lesson.

A

Jackie agrees to pay Ben $1,000 if Ben agrees to not go skydiving for six months. After Ben avoids skydiving for six months, he asks Jackie for payment. Jackie declines to pay Ben the $1,000. The contract between Jackie and Ben: a. will be enforced because Ben exercised forbearance, which is legally sufficient consideration. b. will not be enforced due to lack of consideration. c. will not be enforced because skydiving is a dangerous activity and Ben benefits from the forbearance. d. will be enforced because Jackie had a preexisting duty to pay Ben.

D

Jackson offers to pay Casey $50 for his used business law textbook. Casey agrees to sell it for that amount. They agree to meet one week later to exchange the money for the book. Casey and Jackson have formed: a. a formal contract. b. a unilateral contract. c. no contract. d. a bilateral contract.

D

Jackson, a homeowner, files a lawsuit against Michael, his construction contractor. Prior to trial, they meet with their attorneys to try to resolve their dispute before going to trial. This proceeding is known as: a. early neutral case evaluation b. arbitrability c. summary jury trial d. negotiation

A

Jacob decides to sell his well-known dry cleaning business to Fred. In the sale agreement for the business, there is a clause stating that Jacob cannot open a competing dry cleaning business within ten miles of the business he is selling to Fred. This part of the agreement is known as: a. a covenant not to compete. b. a covenant of goodwill. c. a reformation. d. a covenant of satisfaction.

D

James telephones Wanda, expressing interest in purchasing her famous chocolate ice cream. Wanda receives a purchase order for 100 gallons of ice cream from James for $300. On the appointed delivery date, Wanda delivers James 100 gallons of vanilla ice cream, stating that the contract didn't specify what flavor James wanted. James sues Wanda for the chocolate ice cream. A court will likely find that James: a. can submit evidence of the written contract because contracts can be subsequently modified. b. must accept the vanilla ice cream, because the contract did not specify the flavor. c. must accept the vanilla ice cream, because the contract had an orally agreed-upon condition precedent. d. can submit evidence of the telephone call expressing interest in chocolate ice cream, even though the contract was ambiguous on which flavor would be purchased.

D

James tells Jennie that if she can find him an original painting by G. Harvey, signed with a No. 1, he will reimburse her up to $2,500. If Jennie finds such a painting, presents it to James, and he refuses to pay, she can recover under the doctrine of: a. admission. b. partial performance. c. parol evidence. d. promissory estoppel.

A

Janice tells Marie that she will buy Marie a new dress if she reads a book by Friday night. Marie begins reading and has only two chapters left to finish when Janice tells Marie that she has changed her mind and will not buy the dress. Under the modern approach to contracts, Janice and Marie: a. formed a unilateral contract. b. have not formed a contract, and Janice owes Marie nothing. c. formed a bilateral contract. d. have no contract until Marie finishes reading.

B

Jared contracts with Wilson, who is a lawyer in a large firm, to do some legal work. There is an antidelegation clause in their contract stipulating that Wilson must be the lawyer who handles Jared's work. If Wilson becomes overwhelmed with work: a. he can delegate his work for Jared to another lawyer, as long as the other lawyer is in the same firm. b. he cannot delegate his work for Jared to any other lawyer, even one in the same firm. c. he can delegate his work for Jared to any other lawyer. d. he can delegate some of his work for Jared to another lawyer, as long as Wilson does at least fifty percent of the work.

A

Jessica verbally agrees to sell her house to Kandis, and Kandis makes a $10,000 down payment, moves in, and begins the installation of a pool in the backyard. If Jessica changes her mind seven months later and wants her house back, a court would likely find that: a. Kandis may keep the house because there has been partial performance. b. there is no sale because the contract was not in writing. c. Jessica may get her house back because one year has not yet passed. d. Kandis may keep the house because more than six months have passed.

D

Jim and Kathy have a contract with a term that is not clear. Kathy and Jim both have a different interpretation of the contract. If Kathy wrote the contract, a court will: a. evaluate both interpretations and develop a reasonable interpretation that is somewhere in between. b. call in a third party to develop a reasonable interpretation. c. accept Kathy's interpretation because she wrote the contract and should know what she meant. d. accept Jim's interpretation because Kathy wrote the contract.

D

Jim contracted with United Technologies to install 5,000 feet of Rocketfish Cat-5e network cable in his new office building. United installed 5,000 feet of Dynex Cat-5e network cable instead. The types of cable are essentially the same. When Jim sued for breach of contract, the court likely found that United's actions constituted: a. material breach. b. incomplete performance. c. complete performance. d. substantial performance.

A

Jocelyn hires Collin to paint the fence around her property. Collin is very busy and is owed a favor by Levi, another painter. Collin delegates his duty to paint the fence to Levi. This is: a. a valid delegation because the duty is mechanical and nonpersonal in nature. b. not a valid delegation because services are always personal in nature and cannot be delegated. c. a valid delegation because any service can be delegated. d. not a valid delegation because it is a personal service.

A

Johanna agrees to purchase Jessie's land so that she can build a golf course. They write a contract, and Johanna transfers the deed to Jessie. Jessie pays Johanna the entire purchase price. Johanna and Jessie have discharged their contract by: a. performance. b. breach. c. concurrence. d. lapse of time.

C

Kristen enters Mikhael's art gallery and sees a painting that she loves. She says to Mikhael, "This is the most beautiful Monet I have ever seen. I will pay you $24,000 for it." Mikhael knows that the painting is not an original Monet, but is a painting by a local artist done in the style of Monet. Mikhael does not say anything to correct Kristen, but sells her the painting at the offer price of $24,000. When Kristen discovers the painting is not a Monet, can she rescind the contract? a. Yes, because she overpaid for the painting. b. No, because the parties made a bilateral mistake. c. Yes, because she made a unilateral mistake and Mikhael knew she was making the mistake and failed to correct her. d. No, because she made a unilateral mistake and contracts are never rescinded when a unilateral mistake is made.

D

Kristin contracts with Jacob to buy a car through an online auction service. All of their negotiations and transactions are conducted electronically. None of their communications ever mention the Uniform Electronic Transactions Act (UETA), which was adopted by their state in its entirety in 2001. Their contract is: a. not covered by the UETA. b. covered by the UETA, only if their contract involves computer information. c. covered by the UETA, only if the transaction occurred after 2004. d. automatically covered by the UETA.

B

Kristoff wants to sell his collection of shoes and offers to sell them to Marcus, who just got paid. Marcus is hesitant to accept, but Kristoff lets Marcus know that if he doesn't accept, then there may be trouble. Fearing that Kristoff means to physically harm Marcus, or rob him, Marcus accepts the offer. Will a court enforce this contract? a. Yes, because there is a valid offer and acceptance. b. No, because the consent was not voluntary. c. Yes, because all four requirements of a contract are present. d. No, because it is illegal to sell shoes.

C

Kyle has a credit card with a contract stipulating that he will make monthly minimum payments. Over the course of a year, he incurs $1,200 in debt that he can't pay. Because of this and other debts, Kyle files for bankruptcy. In the bankruptcy, Kyle's assets are distributed to his creditors, and the credit-card company gets $200. The bankruptcy process: a. does not discharge the contract. b. discharges the contract by agreement. c. discharges the contract by law. d. discharges the contract by performance.

B

Laura, who is a widow, sold a piece of property and planned to live off the proceeds during her retirement. Laura has one son, Chris, who helps take care of her home and plans to move in with her and take care of her when she is too old to take care of herself. Chris asks Laura 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. In fact, the contract may be voidable, because it was formed as a result of: a. duress. b. undue influence. c. fraudulent misrepresentation. d. a unilateral mistake

A

Les agrees to install a new hard drive and operating system in Marilee's computer in exchange for four of her used textbooks. After he installs the hard drive, Les says he won't install the operating system unless Marilee gives him two more books. What legal position are the parties in now? a. Marilee can sue for breach of contract, because Les had a preexisting duty to do all of the work. b. Les can receive the extra books in exchange for doing more work as he has given good and fair consideration in exchange. c. Marilee must give Les the additional books. d. Les will only get one more book, because two is too many more to be fair.

C

Lila tells her friend Joanne that she will give her $10,000 toward the purchase of a new car. Lila later changes her mind, and Joanne tells her that she will sue to enforce the contract. A court would likely find that this agreement is: a. enforceable because the $10,000 is the consideration for the agreement. b. enforceable because Lila made a promise to Joanne, which is the same as a contract. c. unenforceable because there is no bargained-for exchange. d. unenforceable because their agreement was not in writing.

B

Linda and Zeke sign a contract for the sale of Zeke's home to Linda. Although the price has yet to be determined, the contract states the property clearly to be sold and the date the house will be delivered to Linda. The contract: a. does not constitute a sufficient writing because it does not meet the writing requirements of the Uniform Commercial Code. b. does not constitute a sufficient writing because the contract does not state the price at which the property will be sold. c. constitutes a sufficient writing because it states the date that the house will be delivered to Linda. d. constitutes a sufficient writing because it describes the property with sufficient clarity.

B

Liz agrees to cook twenty dinners for Brian, and in exchange Brian will repair all of the plumbing in Liz's house. Liz has offered legally: a. insufficient consideration, because there is a clear lack of any bargain. b. sufficient consideration, because Liz has promised something of value. c. insufficient consideration, because this kind of bargain is against public policy. d. insufficient consideration, because cooking twenty dinners is not worth as much as repairing all of the plumbing in Liz's house.

A

Luis contracts with Greenfield to buy several of Greenfield's dairy cows. Greenfield delivers the cows, but Luis doesn't pay for them. Greenfield may be able to have his cows returned if he seeks the remedy of: a. restitution. b. specific performance. c. novation. d. reformation.

D

Madeline signs a contract agreeing to sell Norman her brand-new Porsche 911 automobile for $50. It is possible that a court will: a. immediately reject the contract because there is no consideration. b. enforce the bargain as agreed because of the presence of consideration. c. enforce the bargain as agreed, and not look further into the details. d. look more closely at the bargain to determine whether fraud, duress, or undue influence was involved.

A

Marco files a lawsuit against Allied Company in an Oregon court with limited jurisdiction. The difference between general and limited jurisdiction is based on: a. the subject matter of the cases that the court can decide. b. whether a case is brought by an individual or a business. c. whether the court is exercising in personam or in rem jurisdiction d. how many defendants are named in the lawsuit

D

Mark sings bass for a famous jazz quartet, but he is feeling very tired from all his world travel. He decides to take a vacation and calls his friend Tristan, who is also a famous singer and can sing all the same notes. Tristan agrees to take Mark's place on a two-week tour of China so that Mark can take his much-needed vacation. They write up an agreement where Mark delegates his duty to perform with the group to Tristan. This is: a. a valid delegation because it is in writing. b. a valid delegation because Tristan is a professional singer capable of singing all of the parts. c. not a valid delegation because services cannot be delegated. d. not a valid delegation because Mark's performance is based on his personal skills.

D

Marshall is working on a contract with a U.S. company involving the manufacturing of goods in China, and wants to ensure that U.S. law applies in the event of a dispute. He should include which of the following clauses in the contract? a. International treaty clause b. Arbitration clause c. Forum selection clause d. Choice of law clause

D

Marta owes Carly $5,000 under a contract for maid services that Carly performed. Carly owes her landlord Alec $6,000 in rent. Carly wants to assign the right to receive the $5,000 from Marta to Alec, but the contract between Marta and Carly contains a clause prohibiting its assignment. If Carly assigns the rights anyway, a court will most likely: a. honor the clause prohibiting assignment. b. allow an alienation. c. honor the clause prohibiting assignment only if the assignment was in writing. d. not honor the clause prohibiting assignment.

B

Mason and Chenoa orally agree to a contract in which Mason will replace the fixtures in Chenoa's bathroom. In exchange, Chenoa agrees to cut Mason's hair every six weeks for the next two years. Mason performs his side of the bargain, and Chenoa cuts his hair on schedule for six months. Then she sells her house and moves 2,000 miles away. Mason can seek recovery based on: a. specific performance. b. quasi contract. c. reformation. d. attenuation.

C

Mateo and Astrid have a contract where Mateo will sell his used Ford Bronco to Astrid for $1,400. They are to trade the vehicle for cash on Tuesday. In this contract there is: a. a concurrent condition. b. a condition subsequent. c. no condition. d. a condition precedent.

B

Matthew has a contract to sell a piece of real estate to Betty for $35,000. Betty breaches the contract, and Matthew immediately sells the land to someone else at the best price he can get: $31,000. Matthew can recover: a. nothing because he was able to sell the land to someone else. b. $4,000 as the difference between the market price and the contract price. c. $35,000 as the contract price on the land. d. specific performance.

A

Matthew has a contract to sell a piece of real estate to Betty for $35,000. Matthew breaches the contract and decides to keep the property even though the market price is only $31,000. Betty can recover: a. specific performance. b. nothing, because Matthew wanted to keep his land. c. $4,000 as the difference between the market price and the contract price. d. $35,000 as the contract price on the land.

D

Max and Juli communicate by text message and Juli agrees to marry Max if he promises to take care of her daughter as well. His final text message reply says, "Of course I will take care of her if you marry me. Love you. Max." Juli saves the text messages as proof of his love for her. After they marry, Max refuses to take care of Juli's daughter. Juli attempts to enforce the agreement, but Max argues that it has to be in writing because it is a contract in consideration of marriage. If this ends up in court, the court likely would: a. not enforce the agreement because text messages would not be sufficient writings. b. enforce the agreement, because it is obvious that she would expect him to take care of her daughter before she would marry him. c. not enforce the agreement because the terms are unconscionable. d. enforce the agreement, as copies of the text messages are sufficient writings.

B

McKenna offers to sell Lori her collection of hand-painted European tiles. Before Lori has a chance to accept, McKenna says, "Sorry, I changed my mind. I'm not going to sell the tiles." McKenna has just made: a. restitution. b. a revocation. c. a rejection. d. a counteroffer.

A

Melissa is a minor who agrees to purchase a car from Umberto for $10,000, one month after she turns 18. Upon turning 18, Melissa writes to Umberto, stating that she still agrees to purchase the car. Melissa's contract with Umberto is: a. enforceable because it has been expressly ratified by Melissa. b. unenforceable because Melissa has a right to disaffirm the contract. c. enforceable because Melissa and Umberto agreed to the purchase of a car. d. unenforceable because Melissa was a minor when she entered into the contract.

D

Michael agrees to buy Randy's wheelbarrow for $100. After the agreement is reached, but before performance begins, both Michael and Randy agree to terminate the contract. The effect of agreement to terminate is that: a. their contract is not cancelled due to the existence of a valid agreement. b. both Michael and Randy must still perform their obligations because they agreed to a contract. c. their contract is cancelled due to lack of consideration. d. their contract is cancelled due to rescission.

D

Miller signed an employment contract containing an arbitration clause stating that "any dispute" arising during employment must be resolved by binding arbitration. Two years later, after she was injured on the job and took leave to recover, she was fired. She filed a complaint for disability discrimination with the Equal Employment Opportunity Commission, which gave her a "right to sue" letter. She then filed suit in federal court against her employer for disability discrimination. The court: a. dismissed the suit because it must be filed in state court b. allowed the suit to proceed because arbitration clauses cannot limit the ability to file suit in federal court, only in state court c. allowed the suit to proceed because federal rights take precedence over an arbitration clause in a contract d. dismissed the suit because of the arbitration agreement

A

Morgan signs an installment loan contract with her banker. The contract specifies that Morgan will pay 3.00% interest every month on the borrowed amount of $50,000 for two years. Both Morgan and the banker know the precise amount of the total obligation. This is an example of: a. liquidated debt. b. an accord. c. satisfaction. d. a covenant not to sue.