Q&A Hero

Q: _____ outlaws the unauthorized transfer, possession, or use of a means of identifying another person to violate federal law. A. Aggravated Identity Theft Act B. Identity Theft and Assumption Deterrance Act C. Identity Theft Penalty Enhancement Act D. Uniform Electronic Transactions Act

Q: Promises under seal: A. are enforceable in some states for contracts not involving goods. B. are enforceable under the UCC for contracts involving goods C. are enforceable under the UCC if made by a merchant, in writing, stating the time period over which the offer will remain open. D. are unenforceable as a consideration in a new contract.

Q: _____ is a legal doctrine that restricts a party from denying that a promise was made under certain conditions, even though consideration has not been exchanged to bind an agreement. A. Statutes of limitations B. Promissory estoppel C. Locus sigilli D. Accord and satisfaction

Q: In terms of agreements, preexisting duties: A. are enforceable in most states. B. are enforceable in some states for contracts not involving goods. C. are enforceable under the UCC for contracts involving goods. D. are unenforceable as a consideration in a new contract.

Q: A promise not to sue is commonly called a: A. consideration. B. forbearance. C. detriment. D. release.

Q: _____ is the implied or expressed acceptance of less than what has been billed to the debtor. A. Accord B. Bankruptcy C. Satisfaction D. Consideration

Q: In terms of disputed amounts, satisfaction: A. is the legal term used to describe the sacrifice that each contracting party must experience. B. is the implied acceptance of less than what has been billed to the debtor. C. is the agreed-to settlement contained in the accord. D. is the expressed acceptance of less than what has been billed to the defaulter.

Q: A seal is usually indicated by the addition of the work seal or the letters "L.S." meaning locus sigilli or: A. the "local nature of the seal." B. the "logical signal." C. the "place of the seal." D. the "local deliverance from the state government."

Q: Which of the following legal detriments is known as forbearance? A. Doing something that one has a legal right to do. B. Doing something that one has a legal right not to do. C. Giving up something that one has a legal right to keep. D. Refraining from doing something one has a legal right to do.

Q: Tasha phones Robert and asks if she can borrow his vacuum cleaner to clean her apartment before her parents visit. Robert agrees to this. But when Tasha goes to pick up the vacuum, Robert refuses to give it to her. Which of the following statements is true? A. A bargained-for exchange has occurred, so Robert must loan Tasha the vacuum cleaner. B. A bargained-for exchange has not occurred, so Robert does not have to loan Tasha the vacuum cleaner. C. Robert has promised Tasha something of value, so he must loan her the vacuum cleaner. D. Robert has committed a breach of contract.

Q: Lisa agrees to sell Deb an electronic entertainment center worth $1,000 for $700 in order to have a rapid sale. Later Lisa insists that she may rescind this agreement since the agreed price was 30% below fair market value. Lisa may: A. rescind since the consideration is inadequate. B. rescind since the agreement is unconscionable. C. rescind since the agreement is not bargained for. D. not rescind since Lisa and Deb freely agreed.

Q: When a consideration is so ridiculously inadequate that it shocks the court's conscience, it is considered: A. unconscionable. B. forbearance. C. illusory. D. detrimental.

Q: A woman who can neither speak nor read English purchases a stereo system from a local electronics store. Although the stereo is advertised for $450, the store owners charge the woman $10,000. A court would most likely consider this transaction: A. the result of accord and satisfaction. B. an unconscionable contract. C. a bargained-for exchange. D. an enforceable contract.

Q: Linda calls a cab in the morning to get to work. The fare that Linda would pay to the cab is: A. an exchange. B. a donation. C. a consideration. D. a legal detriment.

Q: The legal term used to describe the sacrifice that each party must experience in a mutual exchange is that party's legal: A. detriment. B. consideration. C. accord. D. release

Q: Under the UCC, a written offer made by a merchant that allows acceptance at any time within a 90-day time period is not binding unless the offeree provides consideration.

Q: ABC Co. promises to pay Sarah $1,000 for the "excellent work she has done in the past." When ABC does not pay, Sarah may sue and collect the $1,000.

Q: A police officer solves a crime assigned to her by her police supervisor. She may collect the reward offered by the crime victim.

Q: The Internet has helped improve the pricing process.

Q: The amendments to the Identity Theft and Assumption Deterrence Act added a new crime to the original statute, called aggravated identity theft.

Q: A bankrupt individual is required by law to eventually repay all his/her debts to creditors.

Q: Traditionally, a charitable pledge was not enforceable as a contractual obligation.

Q: Laura promises to pay Stuart "a reasonable amount" for repairing her car. Stuart sends Laura a $500 invoice and Laura sends Stuart a $350 check marked "payment in full". There is an accord and satisfaction created if Stuart cashes the check.

Q: A disputed amount is one on which the parties reached through mutual agreement.

Q: A partial payment accepted by a creditor will cancel an undisputed amount.

Q: The UCC has eliminated the use of the seal in all sale-of-goods contracts.

Q: Alan promises to pay a debt that was discharged in bankruptcy. This promise requires new consideration under state laws in most cases.

Q: Forbearance is not a detriment.

Q: The law will not enforce an agreement that has not been bargained for.

Q: Maria's daughter is seriously ill. Desperate, Maria deeds her $25,000 house to a physician for $2,000 of medical treatment. This contract is unconscionable.

Q: After the Industrial Revolution, courts no longer looked to see if the things exchanged in a contract were of equal value.

Q: Consideration does not require that the benefits and sacrifices promised between the parties be legal.

Q: Promising not to sue is not forbearance.

Q: Shelly met with an auto accident and was admitted in a hospital, as she had suffered severe injuries. She informed the hospital staff that she was covered under accident insurance, and that the insurance company would pay for the medical bills. The insurance agent arrives and empathizes with Shelly. He informs her that the insurance will cover every cost and that she will have to sign some papers for the insurance company to start the procedures. The papers that Shelly signs are actually an agreement that the insurance company will pay only 30 per cent of the medical bills, since Shelly was driving recklessly. Analyze the case.

Q: Uncle Joe promises Mary a new car on her birthday. This is a contract.

Q: Danny agrees not to go duck hunting if "Save the Ducks" pays him $100. This is forbearance on Danny's part.

Q: Mike and Mickey live at the opposite ends of Texas, some 750 miles apart. They want to make a contract via computer rather than using paper since this will be faster and more convenient. Considering the three current model codes, what steps must Mike and Mickey take under each to make a legal binding agreement?

Q: Joseph offered to sell Chelsea his bicycle for $100. Chelsea told Joseph she would be happy to buy his bicycle, and asked if the price included an extra tire. Joseph said there was no extra tire. Chelsea then agreed to pay $100 for the bicycle, but Joseph refused to sell stating that he now wanted $125 for the bicycle and that Chelsea had made a counteroffer when she mentioned an extra tire. Discuss whether or not Joseph may insist on receiving $125 for the bicycle.

Q: Girard University offered Steamer Ferris a professional position. Girard offered to provide Steamer a house and to pay him an annual salary of $50,000 plus benefits for teaching three classes per semester. Steamer agreed to the contract as long as Girard would also provide an administrative position for his wife. Discuss the agreements between the parties.

Q: Todd offered in writing on Monday to sell his desk to Mike for $150. Todd's offer stated that unless Mike rejected Todd's offer by Thursday, it would be considered accepted. Mike did not reply until Saturday, when he rejected the offer and refused to buy the desk. Todd insists that Mike is bound to purchase the desk since he did not reject the offer by Thursday. Discuss the validity of the contract and the legal obligation of Mike.

Q: Alpha Oil Company sends an offer by fax to Zeno Refining Co. to sell 10,000 barrels of crude oil at $35 per barrel, and mentions it will hold the offer open for Zeno. Four months after receiving Alpha's offer, Zeno faxes an acceptance to Alpha. However, at this time the market price of crude oil has risen to $40 per barrel. Discuss the situation.

Q: Juliana offers in writing to sell her book collection to Linda for $15,000. Three days later, before Linda accepts, Juliana dies and her heirs tell Linda that the $15,000 offer is revoked and that they will not sell the collection for less than $20,000. One week after the original offer was made by Juliana, Linda sends a signed acceptance of Juliana's $15,000 offer. Has the contract been formed? Explain.

Q: Melinda is considering opening a fast-food business across the street near a university campus. Melinda needs to secure $100,000 in loans to open her business. The owner of the land promises her that she has two months to accept his offer of $50,000 for the land. Discuss how Melinda can ensure that the owner does not sell the land to another buyer.

Q: According to the E-Sign Act: A. diverse areas such as database contracts, software licensing agreements, customized software formulation, and the rights to multimedia commodities are covered. B. the participants must concur on the use of an electronic medium to create their contractual relationship. C. e-contracts that are entered into over the Internet will be valid, provided that the parties to the e-contract have agreed that electronic signatures will be used.

Q: The _____ has unified, streamlined, and refined the legal principles regarding such diverse areas as reverse engineering, consumer protection, shrinkwrap licenses, fair use, and consumer warranties. A. Law Enforcement Access to Entity Information Act B. Discovery of Electronically Stored Information Act C. Uniform Computer Information Transactions Act D. Secured Electronic Transactions Act

Q: _____ occurs when one party does not say something about certain facts that he or she is under an obligation to reveal. A. Passive fraud B. Fraud inducement C. Fraud in inception D. Active Fraud

Q: A _____ is a mistake made by only one of the contracting parties and does not offer sufficient grounds for rescission or renegotiation. A. Unilateral mistake B. Mutual mistake C. Binding mistake D. Bilateral mistake

Q: _____ occurs when the dominant party in a special relationship uses excessive pressure to convince the weaker party to enter a contract that greatly benefits the dominant party. A. Business compulsion B. Physical duress C. Undue influence D. Economic duress

Q: When Garibaldi rented an office from Jonas, he agreed, as the landlord, to pay a fair share of the expenses in redecorating the office. After the project was completed, Jonas refused to pay any of the expenses. Analyze the situation in case Garibaldi files a lawsuit against Jonas for breach of contract.

Q: Dale offers via newspaper advertisement a $100 reward for the return of his dog. Henry, who never saw the newspaper advertisement, finds that a dog has strayed into his garden. Henry checks the dog's collar that has a tag with Dale's address and returns the dog, not knowing of the offer. Is Henry legally entitled to the $100 reward? Explain.

Q: While looking for apartments, Brittany finds one that she likes. The building manager agrees to an option contract in which he will hold the apartment for Brittany for four days in return for $100. At the end of the fourth day, Brittany finds another apartment that she likes better and signs a lease with its building manager. Because Brittany's contract with the original building manager is an option contract, the building manager: A. is under no legal obligation to return more than $50 to Brittany. B. is under legal obligation to return Brittany's $100 payment. C. is under legal obligation to return half of Brittany's $100 payment. D. is under no legal obligation to return Brittany's $100 payment.

Q: Booksellers, Inc. agrees in writing to hold an offer open to Smallville City Library, the selling of 20,000 books at $5 each. Booksellers specifically mentions that Smallville has 60 days to accept this offer. However, before the 60 days have passed, Booksellers sells all the books to Universal Library for $7 each. Which of the following is true of this situation? A. Smallville cannot file a legal claim since an offer may be revoked prior to acceptance. B. Smallville can file a legal claim since Booksellers have revoked a firm offer. C. Smallville had not paid any of the purchase prices and hence cannot file a lawsuit. D. Smallville can bring a lawsuit since Booksellers engaged in bait-and-switch tactics.

Q: Brett offers to dust and vacuum all the rooms in Arlene's apartment for $45. Arlene says she will accept his offer if he lowers his fee to $40. Arlene has: A. made an unequivocal acceptance. B. made a counteroffer. C. demonstrated the mirror image rule. D. entered into an option contract.

Q: Delivery of unordered merchandise through the mail: A. can be considered as gifts the receiver does not have to pay for. B. requires that the receiver contact the sender and return the goods. C. is an implied acceptance of the offer to sell goods. D. requires that the receiver pay for the goods.

Q: Mercedes receives a box of unordered office supplies in the mail. What is her legal obligation? A. She must return it. B. She must report this to the local postal inspector. C. She must pay for it. D. She may consider it a gift.

Q: An option contract: A. removes the possibility of revocation through death or insanity of the offeror. B. is valid only if in return for the agreement to hold the offer open, the offeror receives no money or something else of value from the offeree. C. is a contract that permits a party to lease real property while at the same time holding an option to purchase that property. D. is an agreement that binds an offeror to a promise to hold open an offer with no time limit specified.

Q: An agreement in which one party consents to sell to a second party all of the goods that party makes in a given period of time is ____. A. a requirements contract B. a current market price contract C. a cost-plus contract D. an output contract

Q: Highflight Foundation offers $1 million to the makers of the first private spacecraft to fly to the moon and back. Spaceview, Inc. succeeds in producing the first private spacecraft to fly to the moon and back, but Highflight refuses to pay. Is Highflight bound by its offer? A. Highflight is not bound unless there is a written and signed contract with Spaceview. B. Highflight is bound since Spaceview performed the required action. C. Highflight is not bound since the moon is not under U.S. legal jurisdiction. D. Highflight is bound since Spaceview had a firm offer.

Q: Anthony offers to sell a computer to Salvador for $900 if Salvador replies by e-mail only, sent no later than noon on Saturday. On Saturday, Salvador is unable to access his e-mail, so he mails an acceptance at the post office before noon. Which of the following is true of the situation? A. A legal contract exists since Salvador's acceptance was sent by noon on Saturday. B. No contract exists since Salvador's acceptance is not effective until reviewed. C. Anthony is legally bound to the contract since Salvador's e-mail malfunction was no fault of his own. D. A legal contract does not exist since the mode of acceptance specified in the offer was not used.

Q: Rosa sends an offer to Kellen that requires acceptance to be made by U.S. mail. Kellen accepts in a timely manner but sends the acceptance by FedEx which delivers the acceptance to Rosa two days faster than the U.S. mail would. Has Kellen accepted Rosa's offer? A. No, since the offer specified a particular manner of acceptance that was not used. B. Yes, since FedEx was faster than the U.S. mail. C. No, since the acceptance was delivered by a private rather than a public delivery service. D. Yes, since acceptance sent in any form, even if early or delayed confirms the offer.

Q: Soft Feet, Inc. manufactures shoes. Walk Style, Inc. is a retailer of shoes. Soft Feet offers to sell Walk Style 1,000 pairs of shoes at $5 per pair with delivery to be made by October 31. Walk Style accepts but the acceptance requires delivery to be made by October 20. What is the legal status of Walk Style's October 20 delivery date? A. It is does not comply with the elements of a contract. B. It binds the offeror to accept the conditions about the delivery date. C. It is effective only if the original offeror accepts. D. It is invalid under the mirror image rule.

Q: A "click-on" acceptance is a valid method of accepting an e-contract.

Q: ________________ is the first of the four elements of a valid contract. A. Consideration B. Capacity C. Mutual assent D. Legality

Q: Silas, upset because his new car broke down, yells that he would "sell this piece of junk for $100." Ida overhears Silas and says, "I accept and will pay you $100." Silas A. must sell his car for $100 since his statement was clear and definite. B. need not sell his car for $100 since he was clearly angry. C. must sell his car for $100 but only if he were speaking directly to Ida. D. must sell his car for $100 because his anger does convey serious intent.

Q: Hazel offers to sell her home to Mandisa for "about $100,000 plus closing costs." Mandisa accepts Hazel's offer but a dispute arises concerning the precise dollar amount of the purchase price. How will a court resolve this dispute? A. The court will declare the purchase price and terms too indefinite to create a binding contract. B. The court will determine a reasonable price to be paid by Mandisa. C. The court will appoint a licensed real estate appraiser to determine the price to be paid by Mandisa. D. The court will require Mandisa to pay the average of her price and Hazel's price.

Q: Matrix Corporation, manufacturers of computers, agrees in advance to purchase from Chipmaster, Inc., all the computer chips that Matrix needs for the next year at current average market prices. Matrix later does not purchase any computer chips that year. Can Chipmaster enforce the agreement made with it? A. Yes, this is a requirement contract. B. No, the price is not sufficiently defined. C. No, the agreement to purchase is illusory. D. Yes, this is an output contract.

Q: An e-contract is as valid as a paper contract.

Q: UCITA covers diverse areas such as database contracts and software licensing agreements.

Q: An option contract holds an offer open for an agreed period of time.

Q: A merchant's firm offer can exceed three months in duration.

Q: A lease option permits a party to lease real property while at the same time holding an option to purchase that property.

Q: On June 7, Sagan mails an acceptance of Randi's mailed offer to her. The acceptance is received by Randi on June 10. The acceptance occurred on June 7.

Q: According to the UCC, a contract comes into existence if any reasonable means is used to communicate the acceptance.

Q: Omar offers to sell a motorcycle to Adanne for $10,000. Adanne replies, "I will pay $10,000 if you overhaul the engine." Adanne's reply is within the mirror image rule's requirements.

Q: Josephine offers to sell Russell her car for $5,000. Russell rejects her offer but a day later, before Josephine has taken any additional action, communicates an acceptance. Josephine must sell Russell her car for $5,000.

Q: Leo offers to sell his ranch to Iris for $500,000, but before Iris accepts, Leo dies. Leo's heir has no obligation to honor the contract.

Q: A newspaper advertisement addressed to "Ohio residents only" would be a private offer.

Q: Henry sends an e-mail to Bernice regarding the sale of his truck to her for a price "to be determined in good faith." Henry has made a valid offer.

Q: Most of the time, an advertisement is specific enough to constitute an offer.

Q: Acorn Outfitters advertises a large tent, usually selling for $250, to be sold to the first customer the next morning for $25. Samuel is the first in line but Acorn claims that the tent has already been sold. Acorn has engaged in a bait-and-switch confidence game.