LGS 200 Abigail Hammonds exam 2 PRACTICE

What characteristics must an item possess to be classified as a "good"? Choose 2 answers.

1. It must be tangible. 2. It must be moveable.

Lilly hired Harris Lawn Service to cut her grass one summer, and paid through automatic charges to her credit card. After taking three months off for winter weather, Harris staff cut Lilly's grass for four weeks in a row before charging the fees on Lilly's credit card. Lilly protested the charges, stating she did not hire the company to cut grass for the second summer. Harris sues Lilly. What law applies? Choose 2 answer choices.

1. Lilly's silence is acceptance because of the parties' past dealings. 2. Lilly's silence is acceptance because the offeree accepted the benefit offered.

What factors are used to judge if consideration is adequate to ensure a fair bargain?

1. Promises exchanged may not be a preexisting duty. 2. Promises must be made with voluntary consent.

What is the evaluation standard for a personal satisfaction contract? Choose 2 answer choices.

1. Subjective personal taste 2. Objective, reasonable person standard

What must a party show to win a substantial performance lawsuit? Choose 2 answer choices.

1. The breach was not intentional. 2. He or she acted in good faith.

What must a plaintiff prove to show duress in the formation of a contract? Choose 2 answer choices.

1. The defendant committed a wrongful or illegal act. 2. The plaintiff was incapable of voluntarily agreeing to the contract.

Breeze Manufacturing agrees to purchase goods from Hawkins Inc. In what situation could Breeze reject a shipment of goods from Hawkins under the perfect tender rule?

1. The goods do not meet the specifications detailed in the contract.

What are the legal differences between a material breach and an immaterial breach of contract? Choose 2 answer choices.

1. The level of the performance of the contractual obligations 2. Whether the court will discharge the contract

How may a revocable offer effectively be revoked?

1. The offeror may take an action that contradicts the offer and make that known to the offeree. 2. The offeror may withdraw the offer with a clear expression.

What rights does the perfect tender rule give buyers of goods?

1. The right to accept delivery of all of the goods 2. The right to reject the seller's goods if the goods are not exactly as described in the contract

What remedies are available to a seller when the buyer breaches a contract before the goods are delivered to the buyer? Choose 3 answers.

1. The seller may resell the goods and sue to recover damages. 2. The seller may cancel the contract. 3. The seller may withhold delivery of the goods.

What elements are required for an offer to be effective under the common law?

1. The terms of the offer must be reasonably definite so that all parties understand them. 2. The offer must be communicated to the offeree. 3. The offeror must intend to be bound by the offer.

In what situation could a party enforce strict performance?

1. When the requirement is reasonable 2.When the parties specifically agree to it in the contract

What factors are important for a buyer to determine when deciding which remedies apply when a seller breaches a sales contract? Choose 2 answer choices.

1. Whether the seller failed to deliver the goods 2. Whether the seller delivered nonconforming goods

How do parties determine which is the appropriate law for a mixed contract? Choose 2 answer choices.

1. common law is appropriate for some mixed contracts. 2. The predominant-factor test dictates the proper choice of law.

What types of contracts violate public policy? Choose 3 answers.

1. employment contracts that forbid membership in a union 2. conducting trade with a country that is an enemy to the United States 3. a candidate for public office paying his competitor to retire

What factors influence the remedies available to a seller when the buyer breaches a contract? Choose 3 answers.

1. which party has possession of the goods 2. whether the buyer has rejected or accepted the goods 3. whether or not the goods are in transit

Which act or statement is a valid offer?

A detailed advertisement

What is the difference between a material breach and an immaterial breach?

A material breach results in damages to the non-breaching party, while an immaterial breach is minor.

Midwest Life Insurance sells a life insurance policy to Thiago. Under the terms of the contract between Thiago and Midwest Life, Thiago will pay $75 per month for the policy, and, upon Thiago's death, Midwest Life will pay $100,000 to Laurelei. Four years later, Thiago dies, and Midwest refuses to pay under the terms of the policy. The party entitled to sue Midwest for its failure to honor the terms of the contract is:

Laurelei, because she is a creditor beneficiary.

What is the difference between legal remedies and equitable remedies for breach of contract?

Legal remedies are monetary while equitable remedies are non-monetary.

You go out drinking and playing cards with your buddies. After you have consumed a huge amount of alcohol, you agree to sell your motorcycle to your buddy. The next morning, after you sober up, your buddy tells you what you did. Do you think your buddy can legally hold you to the deal to sell him your motorcycle?

No, he can't, if you were so intoxicated that you could not form the mental capacity to enter into a contract, and your buddy knew you were intoxicated.

What is an exception to the statute of frauds?

Promissory Estoppel

The Palace Restaurant purchases goods from Pluto Restaurant Supply House on a regular basis. Pluto breaches the contract with Palace when Pluto runs out of the cooking equipment Palace agreed to purchase. What remedy is NOT available to Palace?

Reclaim the goods from Pluto's other customers

Tanya is in the business of selling rubber mats. Ralph is in the business of selling real estate. Logan is in the business of selling stocks and bonds. Article 2 of the U.C.C. governs the sale of the items sold by:

Tanya only.

In what situations does the UCC overrule common law?

The UCC applies to contracts that sell goods.

What is the result of a contract in which both parties are wrong about a material fact of the contract?

The contract is voidable.

A salesperson says to a customer, "The battery on this leaf blower will last for one hour of use." May the customer sue on an express warranty if the leaf blower dies after 30 minutes of use?

Yes, because an express warranty may be in writing or may be a statement verbally given to the buyer at the time of the sale.

Which of the following qualifies as a "good" under Article 2 of the Uniform Commercial Code?

a commercial freezer unit

Which of the following is an equitable remedy for breach of contract?

an order for specific performance

What is the most common way that duties under a contract are discharged?

by performance

Forcing a party to agree to the terms of a contract through the use of threats or blackmail is called:

duress

Manuel contracts to sell a painting that was painted by his deceased grandmother, then has a change of heart and decides to hang it in his own bedroom. He notifies Nadine, the person who had planned to buy it. Can Nadine have the contract enforced?

es, it can be enforced under the equitable remedy of specific performance.

A contract for a purpose that causes the parties to violate a law is:

illegal and void.

Larue owns a horse ranch. Larue enters into a contract with Dora for the purchase of thirty saddles for his ranch to be delivered on a specific date. If the price of the saddles is not included in the contract, under the U.C.C.:

the court will determine a reasonable price at the time for delivery.

What is the term for the doctrine under which a seller must deliver goods that conform exactly to the terms of the contract?

the perfect tender rule

LaVon contracts with Nathan for Nathan to sing at her comedy club every Friday night in July. The first Friday, the crowd loved Nathan. The second Friday, they booed him. The next week, Nathan got a better offer, so he hired his twin brother Ethan to fill in for him at LaVon's club. Can LaVon compel Nathan to perform?

No, because you cannot compel performance of personal services under specific performance.

Which of these contracts would be enforceable, despite the existence of a mistake? Choose 2 answer choices.

1. Christopher agrees to sell his washer and dryer to Ella. Ella thinks the dryer uses gas instead of electricity, but she is incorrect. 2. Christopher agrees to sell his washer and dryer to Ella in "as is" condition. Ella thinks the set is in excellent condition and is willing to take a chance on buying it. Neither works after a few weeks of use.

What is the result if parties agree to a contract orally, but it is a contract that must be in writing under the statute of frauds?

1.The parties can complete the contract. 2. The contract is voidable.

What remedies are available in the case of a unilateral mistake in making a contract? Choose 2 answers.

1.rescission 2.reformation

Which of the following is a valid offer? 1. Arun distributes flyers at work stating he wants to sell his house, listing the address and the asking price. 2. Eric offers to buy Arun's house for $775,000 with no contingencies because Eric's lease ends in two months. Arun wants to think about it and six days later has not yet responded. 3. Eric offers to buy Arun's house for $290,000. Arun says, "No, but I will sell it to you for $300,000." Eric seems to be upset, so Arun says he will sell it for $290,000. 4. Arun tells Eric he will sell one of his houses for $250,000 by the end of the summer.

2. Eric offers to buy Arun's house for $775,000 with no contingencies because Eric's lease ends in two months. Arun wants to think about it and six days later has not yet responded.

You own a lawn care service. A new customer calls and asks that you mow and weed eat her lawn. You tell her the price will be $150 and she agrees. You show up while she is at work and get the lawn mowed and the weed eating done by the time she gets home. Unfortunately, when she gets home, you discover that you have serviced the lawn of your customer's next-door neighbor instead of hers! Do you think you have any chance of getting any money from the neighbor for the services you have provided?

Yes, the neighbor will have to pay you a reasonable price (not necessarily the contract price) for the work.

American Home Store, headquartered in San Diego, is getting ready for its Fourth of July sale. American orders $1,000 worth of American flags from Canadian Manufacturing, Inc., which is headquartered in Montreal, Canada. American places the order by telephone, and Canadian orally accepts. Two days later, American discovers that it can get the flags cheaper from a manufacturer in Denver. When American attempts to cancel the contract with Canadian, American finds that under the 1980 United Nations Convention on Contracts for the International Sale of Goods (CISG):

the contract is enforceable even though it is not in writing.

Elvis agrees to provide guitar lessons to Angela's niece for three months for $600. Angela decides her niece really is not interested in guitar lessons, and assigns her rights under the contract to Jose, so Jose can use the lessons for his daughter. When Jose contacts Elvis to set up the first guitar lesson for his daughter:

Jose cannot enforce the contract against Elvis because the contract is for personal services.

Marathon Shoe Store Inc. gives notice to HighFlyer Shoe Co. that Marathon cannot pay for its current shoe order and would like to cancel. HighFlyer has not yet finished making the shoes. What options does HighFlyer have to address the breach of contract by Marathon? Choose 2 answer choices.

1. HighFlyer can cease manufacturing any unfinished goods and sell the goods for salvage value. 2. HighFlyer can complete manufacturing and sell the goods, and can sue for any difference between the contract price and the sales price.

Samuel has mental competency issues. Samuel entered into a contract with Beth, but now Samuel is petitioning the court to terminate the contract. What options does the court have in ruling in the case? Choose 2 answer choices.

1. The contract is voidable if Samuel was incompetent at the time the contract was formed. 2. The contract is void if Samuel has been previously determined to be mentally incompetent.

What factors may cause a person to lack contractual capacity?

1. severe intoxication 2. mental incompetence 3. being under the age of majority (usually 18)

What are the elements of consideration? Choose 2 answer choices.

1. something of value from each party 2. an exchange to which the parties agree

The Uniform Commercial Code applies to what types of contract?

Contracts for goods over $500

Which type of lack of capacity is easiest to prove?

Minor status

Which situation would be considered sufficient consideration for a contract to exist?

Pam agrees to pay Derek $500 if he does not sit next to her in class anymore. (Forbearance)

What key factor determines what remedies are available for a seller in a sales contract when there is a breach by the buyer?

The location of the goods involved in the breach

What does the law require for a personal service contract?

The personal service requirement must be stated. Assessment question

What type of acceptance requires an affirmative action for the offeree to accept that offer?

Unilateral contracts

What is the term for when a merchant gives a written, signed assurance that he or she will not revoke an offer for a stated period of time?

a firm offer

Zayn boards the Big Rock Metro to ride downtown to his job. Zayn gives his money to the driver and takes his seat. Neither the driver nor Zayn says anything. Zayn and the bus driver:

have an implied contract.

What is the principle that is applied to determine how much compensation a party receives in a quasi-contract settlement?

quantum meruit

What actions are valid exceptions to the perfect tender rule? Choose 3 answers.

1. The contract is unenforceable if the goods which had been identified to the contract are destroyed. 2. The seller may choose a different means of delivery if the agreed upon means becomes unavailable or impractical. 3. The seller has the right to cure nonconforming goods within the contract time for performance.

What are the possible remedies for a contract formed under duress? Choose 3 answer choices.

1. Allow duress as a defense for breach of contract. 2. Make the contract voidable. 3. Rescind the contract.

Lupita enters into a contract with Faith to purchase a used car. At the time they sign the contract, Lupita appears to be very intoxicated. Faith notices this but signs the contract anyway. If Lupita later decides she wants to get out of the contract:

Lupita can raise the defense of lack of contractual capacity due to intoxication.

How is substantial performance involved with the classification of material breaches versus immaterial breaches?

Substantial performance involves an immaterial breach.

you have a small business supply store. You order fifty boxes of paper from Hammerhill Paper Supply and tell them you need the paper delivered within four days, and Hammerhill agrees to provide the paper within four days. Neither you nor Hammerhill mentions the price of the paper, though. How do you think the price of the paper will be determined if you get into a legal dispute with Hammerhill about it?

The court will determine a reasonable price at the time of delivery.

What is the term for the legal ability to enter into a binding contract?

contractual capacity

Which of the following must a plaintiff prove when suing based on an express warranty for a defective product? Choose 3 answers.

1.One of the buyer's reasons for the purchase is the product warranty. 2. The seller breached the warranty. 3. The seller made a statement of fact to the buyer about the quality or uses of the product.

What legal limitations are imposed on parties to assignments and delegations? Choose 3 answers.

1. Contracts that are for a service that depends on a particular skill or talent may not be delegated. 2. A contract cannot prevent an assignment of the right to receive funds. 3.the assignee obtains only the rights that the assignor had under the contract.

Promissory Estoppel

Promissory estoppel is an exception to the statute of frauds writing requirement. If one party makes an oral promise that should reasonably cause the other party to rely on it, and that party does rely on the promise, the court may enforce that agreement despite the lack of the required writing.

What is the test for whether a contract is governed by the Statute of Frauds because of the one-year rule?

The contract must be objectively impossible to perform within one year.

Hyster Material Handling sells 300 order pickers to Amazon. The order pickers cost $25,000 each, and each comes with a maintenance contract that costs $2,000 per year. After six months, a dispute arises between the parties when Hyster fails to perform all the monthly maintenance required under the contract, and Hyster decides to sue. Because the contract covers both goods and services, to determine what law applies to this contract the court will:

apply the predominant-factor test and determine that UCC Article 2 applies.

Which mistake is likely to be voidable?

bilateral mistake

Dakotah is the cheerleading coach for Northfield High School. Dakotah places an order by telephone with Cheerleader Supply Inc. for thirty cheerleader uniforms. Each uniform is to be emblazoned with the Northfield High emblem and a cheerleader's name. The total cost of the uniforms is $900. Two weeks after placing the order, Dakotah realizes she ordered the wrong style of uniform, so she contacts Cheerleader Supply and attempts to cancel the order. Cheerleader Supply at this time is almost through completing the work on the order. Cheerleader Supply:

can enforce the contract, even though it is not in writing, because it is for specially manufactured goods.

Ellen offers to sell her 1997 Mustang convertible to Fred for $2,000. Fred agrees to pay $2,000 for Ellen's Mustang. Before Fred picks up the Mustang, Ellen discovers that the Mustang is considered a classic car and is worth much more than $2,000. Ellen refuses to sell the Mustang to Fred, stating that the consideration is insufficient. If Fred tries to enforce the deal by taking Ellen to court:

the court would probably enforce the deal because there was valid consideration on both sides

What remedies are available to a buyer when a seller refuses to deliver the goods that are the subject of a contract? Choose 3 answers.

1. The buyer may sue to obtain specific performance if the goods are unique or if damages are an inadequate remedy. 2. The buyer may buy other goods and recover damages from the seller. 3. The buyer may cancel the contract.

Which of these types of contracts must be in writing under the requirements of the Statute of Frauds? Choose 3 answers.

1. promises made in consideration of marriage 2. contracts for the sales of land 3. collateral promises to pay the debt of another person