Q&A Hero

Q: Persons who agree to commit criminal acts for a promised consideration are involved in what criminal law defines as a(n): A. restrictive covenant. B. in pari delicto. C. usury. D. conspiracy.

Q: The illegal practice of charging more than the amount of interest allowed by law is called: A. libel. B. in pari delicto. C. slander. D. usury.

Q: Brandon, a recent law school graduate, says he will provide affordable legal services to anyone who needs help. Although his bar exam results are not out yet, Brandon is certain that he has passed. Legally, are his clients required to pay for his legal services before he has received his license? A. Yes, a court will require that his clients pay in full for any legal services they receive from him. B. Yes, but if Brandon fails the exam, he must return all consideration to the appropriate clients. C. No, since it is against the law for anyone without the required state license to offer legal advice. D. No, because Brandon has acted incompetently.

Q: All lawn maintenance businesses must pay the state a $200 annual license fee with no other legal regulations. ABC Yards, Inc. fails to pay the license fee. Which of the following is true in case ABC Yards has failed to acquire a license because of the failure to pay the $200? A. The lack of a license will not necessarily make a contract void. B. The lack of licenses makes the contracts void under contract laws. C. All contracts of ABC are voidable, due to their failure to obey the regulation. D. Only executory contracts by ABC will be voidable.

Q: Which of the following is true of laws restricting Sunday business? A. They invalidate all agreements made on Sunday. B. They validate agreements made on Sunday for delivery of goods on a business day. C. They validate agreements made on Sunday if the business in question has closed on Sunday. D. They validate agreements made on Sunday requiring performance on a Sunday.

Q: Lizzie works as an entertainment journalist. Her editor tells her that she has to produce a story defaming a television celebrity if she wants to retain her job. Once Lizzie has produced the article and publishes it in the newspaper she works for, her editor fires her. Lizzie wants to bring a lawsuit against the editor for firing her. Which of the following is true of this case? A. Lizzie has committed a crime and hence cannot file a lawsuit. B. Lizzie can bring forth a lawsuit as her contract with the editor contained all five elements. C. Lizzie's contract has been executed, hence the court is likely to award her damages for breach of contract. D. Lizzie has committed a tort and her contract with the editor will not be upheld in the court.

Q: Maria, aged 16, from a wealthy family, purchases designer jeans on credit for $300. The true fair market value for the jeans is $75. Which of the following is true of this case? A. Maria can disaffirm the purchase. B. She cannot disaffirm as her family is wealthy. C. She is liable to pay $300 as per contract. D. She may not disaffirm and is liable for $75.

Q: Which of the following contracts are not voidable by minors at their option? A. Executory contracts B. Contracts for necessaries C. Contracts with banks for educational loans D. Contract to purchase land

Q: The willingness to abide by contractual obligations is: A. ratification. B. emancipation. C. rescission. D. devolution.

Q: Ron, aged 20 years and 4 months, purchases a car from Slim's Auto Sales for $2,000. However, Ron returns the car to Slim Auto Sales telling them he does not feel this is the right car for him and that he wants his money back. At the time of disaffirmance Ron was 21, the age at which he is considered an adult in his jurisdiction. Will this disaffirmance be enforceable in the court of law? A. No, since Ron did not give Slim a signed disaffirmance. B. Yes, since Ron disaffirmed during the year he reached his adulthood. C. No, since the disaffirmance must be written when the price exceeds $500. D. Yes, since the courts and laws always rule in the favor of minors.

Q: Which of the following is a rule recognized by the Restatement of Contracts? A. The incompetent party must return all consideration even if the other party knew about the person's impairment. B. If a contract is executed, the impaired party can void the contract without returning the other party the place he/she was in before. C. A person's contractual obligations are partially voidable depending upon the severity of his/her mental and physical health. D. A person's contractual obligations may be voidable if that person suffers from a mental impairment that prevents him or her from acting in a reasonable manner.

Q: When Julie, aged 27, took flu medication and became very light-headed and confused, Alice, taking advantage of the situation persuaded Julie to sell her $1,000 Rolex watch to her for $100. Julie later realizes what Alice did and decides to take legal action. Which of the following is true as per contract laws? A. Julie cannot sue Alice since she, as an adult, voluntarily sold the watch. B. Julie has the right to get her watch back without returning the $100. C. Alice is allowed to keep the watch and Julie should return the $100. D. Alice should return the watch and Julie should return the $100.

Q: By signing a nondisclosure agreement, an employee can be deprived of employment in the future in certain geographical areas.

Q: When both parties to an illegal agreement are equally wrong in the knowledge of the operation and effect of their contract, they are said to be in pari delicto.

Q: Courts can uphold an agreement that is partly legal and partly illegal.

Q: In some jurisdictions, minors who become _____ means that they cannot void a contract, despite their apparent minority. A. ratified B. emancipated C. abandoned D. disaffirmed

Q: _____ are those that have not been fully performed by both parties, may be repudiated by a minor at any time. A. Contracts for necessaries B. Shield and sword doctrine C. Executed contracts D. Executory contracts

Q: Agreements made on Sunday for work to be done or goods to be delivered on a business day are valid and enforceable.

Q: Melody transfers title of all of her assets to her cousin, Erin and then files for bankruptcy. The transfer of assets is a valid exercise of Melody's ownership rights.

Q: A restrictive covenant in a contract for the sale of a business will be upheld if it is reasonable in time even if it extends beyond the boundaries of the state where the business is located.

Q: A nondisclosure agreement requires employees to promise that, should they leave their present place of employment, they will not reveal any confidential trade secrets that they might learn while on their current job.

Q: Special statutes allow small loan companies, pawn shops, and other lending agencies that accept high-risk applicants for credit to charge a higher rate of interest.

Q: Ratification is the willingness to deny contractual obligation.

Q: A minor may not disaffirm a contract to sell land after becoming an adult.

Q: A person's contractual obligations may be voidable if that person suffers from a mental impairment that prevents him or her from acting in a reasonable manner.

Q: A toast with a glass of wine at the time a contract is signed, will allow the contract to be disaffirmed.

Q: A criminal statute that is obscure or that outlines conduct that is ambiguous may be struck down by the court as void for vagueness.

Q: The practice of charging less than the amount of interest allowed by law is called usury.

Q: Minors who become emancipated, that is, no longer under the control of their parents, are responsible for their contracts.

Q: When a minor indicates by a statement an intent to not live up to a contract, that minor is entitled to a return of everything given to the other party.

Q: A minor enters a contract lying about his age and defrauds the other party. The other party can sue the minor under tort law, rather than contract law.

Q: Carl is tall and looks like he is 21 years old. Carl lies about his age to purchase a home entertainment system for $1,000. In most states Carl may disaffirm his purchase.

Q: If a minor makes a contract for necessaries, he/she will be liable for the fair value of those necessaries.

Q: Big Market sells groceries to Jessica, a minor. Jessica may rescind the contract and return the groceries.

Q: Jackie borrowed $1,000 from Uncle John in 1975, with repayment due in 1977. Jackie never repays the loan and Uncle John never attempts to collect it. In 2004, Jackie writes Uncle John a letter stating that she is sorry that she did not repay the debt and encloses a check for $100 toward repayment. Uncle John cashes the check. He dies of a heart attack one week later. Uncle John's heirs find the letter and sue Jackie to collect the remaining $900 balance. Analyze the case.

Q: Matrix, Inc. is considering opening a restaurant in Smallville and has located a prime vacant land location that is for sale. Matrix wants to do some market research and obtain financing for construction before purchasing the land but is concerned that a competitor, Zion, Inc., will purchase the land if Matrix does not act immediately. What legal steps should Matrix take, short of purchasing the land now, to prevent Zion from acting before them? Explain.

Q: Mullroy has complained to the local police about the vandalism in his neighborhood. However, the police have taken little interest to curb the vandalism, much to Mullroy's disappointment. Determined to resolve the problem, Mullroy invites the local sheriff to his daughter's birthday party and offers him free weekend dinners at Mullroy's family restaurant if the sheriff promises to look into the vandalism problem. Discuss the nature of consideration and contract in this case.

Q: Mitchell owed the National Medical Federation $250 for books he had purchased from that organization. He sent the federation a check for $100, writing on the check, "In full payment for the books I purchased." The federation cashed the check but continued to demand the $150 balance. Discuss if the federation was within its rights to do so and whether the federation's actions reflect an accord and satisfaction agreement with Mitchell.

Q: Sergie orally agrees to pay Zenith Finance Co. a $300 loan debt that was discharged in bankruptcy when Zenith told Sergie that repaying the debt would help him "rebuild his credit" since Zenith would report his payments to credit reporting agencies. Discuss the case.

Q: Tim's mother was concerned that Tim would develop cancer if he used tobacco, so she promised Tim $10,000 if he would refrain from any use of tobacco until age 30. Tim did so but his mother refused to give him the $10,000. Does Tim have a legal right to the $10,000? Explain.

Q: Teller agreed to buy a stolen piano from Luthor, but failed to live up to his part of the deal. Does Luthor have a legitimate cause of action against Teller? Explain.

Q: Andrew's neighbor, Charles, is selling drugs from his home. Since Andrew is concerned about the well-being of his own family, he offers to pay Charles $60,000 to stop selling drugs. Charles stops but Andrew refuses to pay. Can Charles successfully sue Andrew to force him to pay the $60,000? Explain.

Q: Sarah promises to give $10,000 for the construction of Save the Butterflies, a local charity, and is publicly honored as a "golden" donor of Save the Butterflies, by putting her name on the "Wall of Honor." Sarah later does not pay the $10,000. Discuss the ways in which Save the Butterflies may legally collect the $10,000 from Sarah.

Q: Pantia agreed to write software codes for "a reasonable price" for a video game being produced by Mindbinder, Inc. When Pantia submitted a bill for $5,000, Mindbinder believed that a reasonable amount for the work was $3,000 and sent Pantia a check for that amount with a notation on the check, "Payment in full." Discuss the case

Q: Monty quit his $150,000 annual salary job with Computer Associates in Monterey, California, and moved with his family to Fairfield, Connecticut based upon an oral promise by Software Power to provide reimbursement of all moving expenses and at least three years employment at an annual salary of $250,000 per year. One month after moving, and before being reimbursed for moving, Monty's employment with Software Power is terminated due to a reduction in force caused by lower-than-expected product sales. Can Monty successfully sue Software Power? A. No, since the promise was oral. B. Yes, under promissory estoppel. C. No, since a promise of employment is always subject to market conditions. D. Yes, but only for the moving expenses that Monty can prove he incurred.

Q: Edwin, Marketing VP of Amalgamated Sales, Inc., writes a letter dated August 1 to Bargain Stores, Inc., offering to sell candy to Bargain Stores at $50 per case for the next one month. In mid August, Amalgamated receives an offer from Dandy Stores, Inc., to purchase this candy at a price of $75 per case. Can Amalgamated withdraw its offer to Bargain Stores? A. Yes, the offer may be withdrawn since it lacks consideration. B. No, as this is a firm offer. C. Yes, the offer was simply an invitation to negotiate. D. No, as this is only an option.

Q: Sally's grandmother, Laura, promised in her will to make Sally an heir to her home if she would move into Laura's home and care for her. Sally agreed to this and moved into Laura's home. But when Laura died, her will named Bob, a family friend, as heir to her home. Is Sally legally entitled to the home? A. Yes, helping her grandmother provided consideration. B. No, Sally just had a duty to help her grandmother. C. Yes, Sally was legally closer to her grandmother than Bob. D. No, Laura may write her will however she wishes.

Q: While the Washington family was gone for the weekend, their home was broken into and robbed. The professional boxer who lived next door saw the thief, apprehended him, and forced him to return the stolen possessions. When the Washingtons returned, Mr. Washington told the boxer that he would give him $5,000 for his efforts. The next morning, Mr. Washington decided to give him only $2,000. Which of the following is true of this case? A. Mr. Washington broke his contract with the boxer. B. The boxer's act of bravery would be a past consideration. C. The bargained-for-agreement obligated Mr. Washington to pay the boxer $5,000. D. Mr. Washington would lose if the boxer brought a suit against him to recover the amount.

Q: Jemmima agrees to babysit Avery's daughter as often as Avery wishes if Avery cleans Jemmima's house every week. This agreement is: A. enforceable because it is an option. B. enforceable because the amount in the contract is not disputed. C. unenforceable under the doctrine of estoppel. D. unenforceable because it contains an illusory promise.

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.