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Law
Q:
The satisfactory performance by a car dealer of a contract for the purchase of a new car would be judged by an objective standard.
Q:
Promising to pay when goods are delivered is an example of a condition precedent.
Q:
Stella contracts to purchase Wilma's horse for $10,000. The horse dies soon after the contract is signed. Stella is still obligated to pay for the horse.
Q:
Two parties are associated with any assignment.
Q:
A fraudulent conveyance is a transfer of property with the intent to defraud creditors.
Q:
As a measure of protection against subsequent assignments, the assignee should give notice of the assignment to the obligor.
Q:
If due notice has been given and the obligor makes payment to the assignor, the obligor is excused from making payment to the assignee.
Q:
When an assignment occurs, the assignee assumes the contractual obligations previously held by the assignor.
Q:
Jackie's mortgage payment to Commerce Bank was due on June 1. On May 31, Jackie received a notice that her mortgage had been assigned to Brown Investments. Jackie is allowed a reasonable time to verify that an assignment has been truly made.
Q:
An incidental beneficiary can legally enforce the contract made by those in privity of contract.
Q:
A transfer of a contract right is called a delegation.
Q:
Jackson transfers his business accounts receivable to Friendly Finance Co. This is an assignment.
Q:
An individual who is affected by a contract but who is not one of the contracting parties is known as a third party.
Q:
If Ann is named as a donee beneficiary on Carl's life insurance policy, Ann cannot sue the insurance company if it fails to pay her when Carl dies.
Q:
The standard construction rule is the most fundamental guideline involved in the interpretation of written contracts.
Q:
Under the parol evidence rule, evidence of oral statements made before signing a written agreement is admissible in court to change the terms of a written agreement.
Q:
Oral evidence cannot be used to clarify terms that are obscure in a written contract.
Q:
Charles only has a photocopy of his written contract with Jenny, and not the original. The photocopy is not acceptable evidence in a trial concerning the contract.
Q:
A contract of lease should not only be in writing but must also be presented to the court for it to be enforceable.
Q:
Sean gives an oral promise to Oscar to sell his old house. Oscar, relying on Sean's promise, puts on a new roof and paints it. Oscar cannot enforce this oral contract.
Q:
Jennifer orally contracts to purchase a television for $450. This contract is legally unenforceable.
Q:
The administrator of an estate is a person named by the court.
Q:
The person to whom a cosigner makes a promise is the obligee.
Q:
Bernadette contracts in writing to sell Emily a flatbed trailer so that Emily's son can use the trailer as the base of a homecoming parade float on October 17. Bernadette knows all about the parade, but the written contract only requires Bernadette to deliver the Trailer "in October" and Bernadette uses the trailer for her projects until October 20 when she tenders delivery to Emily. Emily refuses the trailer and refuses to pay the contract price since her son no longer needs it. Discuss in detail what evidence is admissible in a suit by Bernadette against Emily for breach of contract.
Q:
McDougal Constructions and Espinosa entered a contract to build the latter a two-storey house. However, after the company began its constructions, Espinosa decided that she wanted a terrace garden, making the house a three-storey. McDougal indicated the additional costs to Espinosa and completed the job including the terrace garden - neither of which was in writing or included in the original contract. Espinosa paid McDougal the original amount but did not pay the extra amount for the third storey. Discuss if the court will admit an oral testimony of the McDougal's to the original contract.
Q:
Kay uses the symbol *' as her signature. In a written contract Kay's name is written, but on the signature line for Kay's name only the * that Kay made appears. Discuss whether or not * binds Kay to the contract.
Q:
Most oral contracts are invalid.
Q:
If the terms of a contract make it impossible to complete the agreement within one year, the contract must be in writing.
Q:
Late one evening Charles and Henry are discussing the purchase and sale of $2,500 of coffee shop equipment after entrepreneurship class. They are in the classroom when Henry writes their agreement on the classroom whiteboard and both Henry and Charles sign it on the whiteboard. Discuss if this whiteboard document is sufficient to provide a binding written agreement.
Q:
On September 1, Isabel contracts with Ned to sing at Ned's restaurant starting on October 1 and ending on October 15 of the following year. Discuss if this contract must be written and signed to be legally enforceable.
Q:
In June, the Daniels contracted with Twining to build a stone path leading from the road to their vacation home. They asked him to complete the job within 11 months. Explain whether Twining and the Daniels must enter into a written agreement for such a contract to be enforceable.
Q:
The Nerd's Club orally gives an order to T-Shirts R Us Inc. for T-shirts worth $600. The T-shirts have the date and location of the Nerd's Club's annual party printed on them. Discuss in detail whether or not this oral order is enforceable once the T-shirts have been made.
Q:
Jones orally agreed to sell his fax machine to McKay for $475. He tried later to back out of the deal on the grounds that the oral agreement was unenforceable. Discuss the case.
Q:
Emilio takes his unconscious friend Tod to the hospital. However, the hospital will admit Tod only if someone can promise to pay Tod's medical bills. Emilio orally promises to do so, and the hospital admits Tod. Discuss in detail whether or not this statement is legally binding on Emilio and/or Tod.
Q:
Joseph, an ex-manager, dies and his daughter Samantha is made executor of his estate. Joseph's creditors assert that Samantha must personally pay Joseph's debts because she is his daughter and executor of his estate. Analyze.
Q:
Celebrity Shelly Dunkle, wishing to spend a few undisturbed days by herself, checks into a resort hotel. She reserves a suite under the name of Barbi and stamps the initials B.I. into the hotel register. She also orders room service and signs all hotel bills with those same initials. Which of the following statements is true?
A. Because Shelly has not signed her real initials, she cannot be held liable for the cost of the suite and all other bills she rings up under the initials B.I.
B. Because Shelly has not signed her real initials, the hotel management cannot prove that any contractual agreement took place between them.
C. Because the initials B.I. constitute Shelly's legal signature, she is legally obligated to pay for the cost of the suite as well as for other bills that she signs using those initials.
D. Because Shelly did not sign her real name both parties must split payments for all bills signed with the initials B.I.
Q:
Rocco breaks both his hands in a motorcycle accident. When he wants to make a contract with Iago, Rocco is physically unable to sign the contract due to his broken hands. What is best for Rocco and Iago to do?
A. Rocco may select someone to sign on his behalf.
B. Have an elected public official sign for Rocco.
C. Have Iago sign for himself and Rocco.
D. Rocco should wait until he himself is able to sign.
Q:
Which of the following is true of using facsimile signatures in contracts?
A. A facsimile signature violates the best evidence rule and is unacceptable even if the contract validates it.
B. The law decrees the use of facsimile signatures of public officials as a fraud.
C. The law allows the use of facsimile signatures and contracts in place of original ones.
D. The use of facsimile signatures of public officials is allowed when certain requirements are followed.
Q:
Which of the following is true of "click" fraud?
A. The click-on process functions only in online contracts and not for online advertisements.
B. Clicks are proven ways to gauge interest in the advertiser's service or product.
C. One problem that arises in this area is verifying the identity of the "clicker."
D. The click-on process functions only for online advertisements and not for online contracts.
Q:
Which of the following statements about the Fair and Accurate Credit Transactions Act is true?
A. It establishes the same type of legal parity between electronic records and paper records.
B. It is a federal act designed to deal with problems associated with cyber-commerce.
C. Receipts cannot display credit card expiration dates.
D. It is an amendment to the Fair Credit Rating Act.
Q:
A long-term written sales contract between Alder, Inc. and Zenith, Inc. provides for cash payments to be made by Zenith, Inc., the buyer, on the first of the month. Zenith has been using a wire transfer payment method, but Alder asserts that Zenith is in breach of contract since it has not received payment in cash. Which of the following is true of this case?
A. Zenith cannot introduce oral evidence in court since it violates the parol evidence rule.
B. Zenith can introduce evidence of the payment under the exception to the parol evidence rule.
C. Zenith violated the best evidence rule, hence cannot produce evidence in court.
D. Zenith can prove that since wire transfer and cash are identical, the payment is made to Alder.
Q:
Brogan, aged 16, enters into a written contract with Willy, to sell his horse to Willy. Later Brogan seeks to be released from the contract and wants to offer in court oral testimony concerning his age. The admission of this testimony is governed by:
A. the standard construction rule.
B. the best evidence rule.
C. the equal dignities rule.
D. the parol evidence rule.
Q:
Under the ____, the courts generally accept into evidence only the original of a writing, not a copy.
A. best evidence rule
B. parol evidence rule
C. standard construction rule
D. equal dignities rule
Q:
Vega appoints Ancel, a real estate broker, to negotiate the sale of her home. Which legal rule requires that this agreement be written?
A. Parol evidence rule
B. Best evidence rule
C. Standard construction rule
D. Equal dignities rule
Q:
According to the standard construction rule:
A. whenever an ambiguous term, clause, or line is found in a prewritten contract, that ambiguity is interpreted against the party who wrote the contract.
B. evidence of oral statements made before signing a written agreement is usually not admissible in court to contradict the terms of a written agreement.
C. the courts generally accept as evidence only the original document not a copy.
D. when a party appoints an agent to negotiate an agreement that must be in writing, the appointment of the agent must also be in writing.
Q:
Catherine and Jacob have a written contract to buy and sell "100 cases of widgets." After signing the contract they orally agree to modify the contract to "1,000 cases of widgets." If they are in litigation concerning the amount of widgets involved in the contract, can evidence of the oral change be introduced into evidence?
A. No, since this violates the parol evidence rule.
B. Yes, since both signed the original contract.
C. Yes, since this is an exception to the parol evidence rule.
D. No, since this violates the best evidence rule.
Q:
Uncle Rodrick was deeply in debt when he died. His niece Evangeline became the administrator of his estate. She orally promised Rodrick's creditors that she would personally pay his debts if they would not publicize the fact that Rodrick died in debt. When Evangeline was unable to pay the debts, the creditors sued her. Will the creditors be legally able to collect from Evangeline?
A. Yes, since there was a bargained-for exchange.
B. No, since Evangeline was not Rodrick's child.
C. Yes, since Evangeline made a guaranty of payment.
D. No, since her promise was not written and signed.
Q:
Sagan is borrowing money from Big Bank and his friend Leda, who works for Graille Systems, signs the loan agreement promising to pay the debt if Sagan does not. Who is the obligee?
A. Sagan
B. Leda
C. Graille Systems
D. Big Bank
Q:
Gabriel applies for a home loan and, Mark signs the agreement promising to pay off the debt in case Gabriel fails to do so. In this case Mark is:
A. the cosigner.
B. the oblige.
C. the obligor.
D. the assignor.
Q:
Matrix, Inc. is the general mortgage contractor of a large commercial building project. They subcontracted with Acme Flooring, Inc. to have flooring installed throughout the building. When Matrix failed to make payments to Acme as agreed, Acme stopped working. Commercial Bank, the lender for the project, orally promised Acme that Commercial would pay whatever Matrix failed to pay Acme if Acme would resume work. Acme finished the flooring but was still not paid. Which of the following is true under the Statute of Frauds?
A. Commercial Bank is not obliged to pay Acme as the promise must be written and signed.
B. Commercial Bank's promise enhanced its mortgage interest, hence it to should pay Acme.
C. Commercial Bank is not obliged to pay to Acme since Matrix was not a party to its promise.
D. Commercial Bank's promise did not involve the actual lending of money.
Q:
Charlie orally promises Holly that he will marry her. He also states that if they ever get divorced, then he will transfer one-half of his assets to Holly. They marry and divorce within a year. Which of the following is true of Charlie's promise to Holly?
A. The promise qualifies to be an oral contract and is hence legally enforceable.
B. The promise is legally enforceable to the extent it does not involve the transfer of land ownership.
C. The promise is not legally enforceable unless Holly proves that the promise influenced her decision to marry him.
D. The promise is not legally enforceable since it was not written.
Q:
Which of the following contains all the elements of a written agreement and that can be enforceable under law?
A. "Henry Shay agrees to purchase hand-knit sweaters for $45 apiece. Signed, Henry Shay."
B. "Silvie Nader and Henry Shay are parties involved in this contract for the purchase of hand-knit sweaters on Wednesday, June 17. Signed, Henry Shay and Silvie Nader."
C. "Silvie agrees to mail six hand-knit sweaters, at $45 apiece, to the house on Wednesday, June 17. Signed, Silvie Nader."
D. "Agreement by Henry Shay and Silvie Nader. Henry agrees to purchase from Silvie six of Silvie's hand-knit sweaters at $45 each. Signed, Henry Shay."
Q:
A major flaw of the click-on process is that it functions for online contracts, but not for online advertisements.
Q:
The Uniform Electronic Transactions Act created a new set of legal rules governing electronic contracts.
Q:
The FACT Act focuses on contracts that involve the sale of computer software, multimedia products, and any other type of computer information.
Q:
Which of the following is true of the Statute of Frauds?
A. It states that all contracts have to be in writing to be enforceable in the court of law.
B. It decrees oral contracts to be invalid and hence not upheld or enforceable by law.
C. It states that certain types of contracts have to be in writing to be enforceable.
D. It maintains that agreements can be oral while contracts have to be in the written format.
Q:
Henry orally contracts with Faith to write special accounting software that usually takes three years to complete. What is the legal status of this agreement?
A. It is enforceable because Henry cannot complete writing the software within a year.
B. It is unenforceable since the contract is not written and signed.
C. It is enforceable, but only to the extent of work Henry completes within the first year of the contract.
D. It is unenforceable since the contract involves a tangible work product.
Q:
Donna entered into an oral contract with Ava to purchase a house from Ava, with $500 per month payments for the next 10 years. Donna moved into the house, remodeled it, and did extensive repairs. At the end of 10 years, Ava refused to convey title to the house to Donna and produced evidence at the resulting trial that the fair market rental value for the house averaged $800 per month over the 10-year period. Which of the following is true according to the Statute of Frauds?
A. Donna is entitled to the ownership of the house since she had an oral contract with Ava.
B. Donna cannot claim ownership of the house since there was no written contract with Ava.
C. Donna can claim ownership since she remodeled the house relying on the oral contract.
D. Donna is not entitled to the ownership of the house since she was paying below the fair value.
Q:
A notary is not authorized to read the document when providing acknowledgment of a signature.
Q:
The provisions of Article 2 of the Uniform Commercial Code apply when a cyber-agreement deals with goods.
Q:
It is necessary for written agreements to always be signed by both parties.
Q:
Facsimile signatures are as valid as original signatures under contract law.
Q:
Alice's attorney is preparing her will. Witnesses are required when Alice signs her will.
Q:
Reed needed expensive medical treatment for the injuries he suffered in a fire that ravaged his home. Lacking medical insurance and unable to obtain a bank loan, Reed turned to Lance, a local person known for his gambling prowess. Lance offered Reed $15,000 if Reed would repay him $23,000 in 36 monthly installments of $521 each. According to the laws in Reed's state, the maximum amount of annual interest that can be charged on loans is 20%. Explain whether Lancet's loan was legal.
Q:
Ron, a fast-talking, used car salesperson, convinced Maureen, an elderly semi-invalid, to purchase an automobile worth $500 for $12,000. When Maureen later refused to pick up the car or pay the bill, the used car dealer sued her. Discuss the case.
Q:
Irene buys Shawn's second hand furniture and they sign a contract on a Sunday. However, the contract mentions that Irene will collect the furniture on Tuesday and will pay the consideration to Shawn at that time. Analyze the legality of the contract considering that the state where Irene and Shawn live are not very restrictive about prohibiting all business activity on Sundays.
Q:
Amanda agrees to pay a county official $20,000 personally in exchange for his using public funds to build a public one-half-mile-all-weather road into her farm so that she can attract buyers for her farm. The county official takes $20,000 but never builds the road. Discuss the enforceability of this agreement.
Q:
Suds, Inc., a local self-service laundry, has a large sign on the inside wall reading: "NOT RESPONSIBLE FOR ANY DAMAGE TO OR LOSS OF CLOTHING." Georgia puts her damp clothes in a drier and within three minutes, the clothes are burning due to an excessively hot drier. Suds had failed to perform maintenance on the drier according to the manufacturer's instructions. Discuss in detail Georgia's ability to recover from Suds for her burnt clothing.
Q:
The equal dignities rule provides that when a party appoints an agent to negotiate an agreement that must be in writing, the appointment of the agent must also be in writing.
Q:
After betting $4 million on the outcome of a professional baseball game, Jake wants to make sure that he does not lose his money. He enters an agreement with a team's starting pitcher. The pitcher agrees to throw "fat" home run balls to the other team's batters in exchange for $75,000 from Jake. The pitcher gives up 10 home runs in the first three innings and his team loses the game. Jake refuses to pay him the $75,000 they agreed upon in the contract. If the pitcher sues Jake for breach of contract, which of the following is most likely to be the court's ruling?
A. The contract is divisible and will award the pitcher damages for the legal sections of the agreement.
B. The parties are in pari delicto and will refuse to award the pitcher any damages.
C. The pitcher can be declared less guilty of premeditation and will be awarded the damages.
D. The pitcher maintained his promise as per the contract and hence Jake will have to award the consideration.
Q:
Which of the following is true about the legality of an agreement?
A. An agreement is not divisible if the legal part of a contract can be removed from the illegal part without changing the nature of the contract.
B. The court will not enforce any agreement or contract that is either fully or partially illegal.
C. An agreement can sometimes be partly legal and partly illegal.
D. A court has to enforce both the illegal and the legal part of the contract.
Q:
Larry, a minor, bought a moped from the RU-Ready-2-Drive Used Moped lot. The next day he accidentally ran the moped into a telephone pole and seriously damaged the vehicle. Larry transported the damaged vehicle to RU-Ready-2-Drive and demanded a return on his money. Must RU-Ready-2-Drive comply with his request? Explain.
Q:
Susan, aged 16, owns a rare violin. Eric knows Susan is 16 and contracts with Susan that she will sell him the violin for $1,000 with delivery to take place when Susan is an adult. When Susan seeks to disaffirm this contract, Erin asserts that since delivery is to occur after Susan becomes an adult, she may not disaffirm. Analyze the case.
Q:
Gail buys a car at the age of 17 and makes regular monthly payments until six months after her 18th birthday, when the car is totaled in a wreck. Gail wants to disaffirm the car purchase. The age of adulthood in Gail's state is 18. Discuss.
Q:
Alex, aged 30, appeared to be normal but suffered from the secret delusion that he was a spy for the U.S. government on the trail of terrorists. Alex purchased a new car from Marvel Motors, Inc. and drove it so recklessly "chasing terrorists" that the engine burned up. Alex, not under medical treatment, seeks to rescind the car purchase and have his money returned. Analyze the appropriate solution to this case.
Q:
Before Kramer entered a detoxification center for his alcoholism, he went to an electronics store and spent $500 on a new, nonrefundable television. He had several drinks before he went into the store but was not intoxicated. After he was released from the costly center three months later, Kramer decided to return the television. He believed he could disaffirm the contract because he was intoxicated when he made the purchase. Analyze the case.
Q:
Jeanie, a prosecutor, agrees with Martin not to prosecute Martin's son for drunk driving in exchange for Martin employing her in his law firm two years after the drunken driving charge is dismissed. This is a(n):
A. nondisclosure agreement.
B. usurious agreement.
C. agreement to escape liability.
D. agreement to obstruct justice.
Q:
Rodney parks his car at Car Stack Parking Lot, Inc. On the back of the parking stub provided to Rodney, there is a statement typed in large letters: "NOT RESPONSIBLE FOR DAMAGE TO CARS." When Rodney returns, his car has been dented by the Car Stack attendant who was attempting to park more cars on the lot. According to law, the statement on the stub:
A. is enforceable against Rodney in any event.
B. is enforceable against Rodney only if he had the opportunity to park elsewhere.
C. is not enforceable against Rodney in case he instructed the attendant to be careful around his car.
D. is not enforceable against Rodney, since it can be proved to violate public policy.
Q:
Eve, an experienced automotive engineer, signs an agreement with her employer, Environmental Auto Co., that she will never work in the auto industry after she leaves employment with Environmental. A court considering this agreement:
A. will declare it void, as geographical area is not specified.
B. will enforce the agreement in any event.
C. will only enforce the agreement if it resulted from a bargained-for exchange.
D. will enforce the agreement only if such agreements are customary in the auto industry.
Q:
Which of the following is true of nondisclosure agreement?
A. It requires employees to promise not to reveal any confidential trade secrets, should they leave their present employment.
B. It limits a worker's employment options after leaving his or her present job in order to protect the present employer's confidential matter.
C. It restricts the seller of a business to enter the same type of business during a reasonable time and within a reasonable geographical area.
D. It states that the party who wrote the contract will not be liable for any economic loss or physical injury even if that party caused the loss or injury.