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Law
Q:
Forbearance is sufficient consideration for a valid and enforceable contract.
Q:
Promissory estoppel is the legal enforcement of an otherwise unenforceable contract due to a party's detrimental reliance on the contract.
Q:
Consideration is what a person will give in return for performing a contract obligation.
Q:
Consideration is optional in every contract.
Q:
In a bilateral contract, the consideration for a promise is a completed act.
Q:
In a unilateral contract, one party's consideration is a promise and the other party's consideration is an act.
Q:
The part of the Uniform Commercial Code that governs contracts for the sale of goods is Article _____.
A. 2
B. 3
C. 4
D. 5
E. 6
Q:
All contracts can be categorized as either _____ or _____ contracts.
A. unilateral; complete
B. unilateral; trilateral
C. bilateral; trilateral
D. unilateral; bilateral
E. bilateral; complete
Q:
A _____ contract is commonly defined as a promise in exchange for a promise.
A. unilateral
B. trilateral
C. complete
D. bilateral
E. classified
Q:
Which of the following is true regarding the Uniform Commercial Code?
A. It has been adopted federally and is therefore applicable in all states.
B. It has been individually adopted by all states completely and in the same manner.
C. It became the law in each state that adopted it in whole or in part and state laws differ somewhat.
D. It was defeated and voted down by an act of Congress.
E. It was replaced by the Restatement of the Law Second, Contracts.
Q:
Which of the following was propounded by prominent legal scholars, recruited by the American Law Institute?
A. The Restatement Second of the Law of Contracts.
B. The Convention on Contracts for International Sales of Goods.
C. Common law.
D. Both common law and the Convention on Contracts for International Sales of Goods.
E. Both the Convention on Contracts for International Sales of Goods and the Restatement Second of the Law of Contracts.
Q:
Which of the following is the reason the Uniform Commercial Code was drafted?
A. Different states had different laws governing contracts that did not result in a smooth flow of interstate commerce.
B. Some states had no law governing contracts.
C. Federal law governing contracts was difficult to apply.
D. The Uniform State Act on laws was not working.
E. The Restatement of the Law Second, Contracts was not being evenly and fairly applied.
Q:
Which of the following represents a lack of genuine assent?
A. Acceptance secured through fraud.
B. Acceptance secured through undue influence.
C. Acceptance secured through misrepresentation.
D. Acceptance secured through fraud or undue influence, but not through misrepresentation.
E. Acceptance secured through fraud, undue influence, or misrepresentation.
Q:
Which of the following are the two most important primary sources of contract law?
A. Case law and the Restatement of Law.
B. Case law and the Uniform Commercial Code.
C. The Uniform Commercial Code and the Convention on Contracts for International Sales of Goods.
D. Case law and the Convention on Contracts for International Sales of Goods.
E. The Convention on Contracts for International Sales of Goods and the Restatement of the Law Second, Contracts.
Q:
Today's law of contracts originated from judicial decisions in _____.
A. France
B. Italy
C. Spain
D. England
E. Switzerland
Q:
The law of contracts is primarily _____ law.
A. civil
B. statutory
C. common
D. restated
E. modified
Q:
The legal ability to enter into a binding agreement is known as _____.
A. majority
B. emancipation
C. contractual knowledge
D. contractual capacity
E. informed consent
Q:
Which of the following are examples of people who do not have the capacity to enter into legally binding contracts?
A. Those under the age of majority and suffering from a mental illness.
B. People suffering from mental illness and intoxicated persons.
C. Intoxicated persons and those under the age of majority.
D. Only people suffering from mental illness.
E. People under the age of majority, people suffering from mental illness, and intoxicated persons.
Q:
Which element of a contract requirements that a contract not be either illegal or against public policy?
A. Consideration.
B. Capacity.
C. Legal object.
D. Illegal prohibition.
E. Ethical requirement.
Q:
The person who makes an offer is called the _____________.
A. offeree
B. offeror
C. agreeor
D. agree
E. inquirer
Q:
The person who agrees to the terms of an offer by another party is called the _____.
A. offeree
B. offeror
C. agreeor
D. agree
E. inquirer
Q:
Consideration is defined as _____.
A. being cordial in the negotiation of contracts
B. refraining from unethical behavior in the negotiation of contracts
C. being both cordial and refraining from unethical behavior in the negotiation of contracts
D. a bargained-for exchange
E. a contract negotiated in person as opposed to by telephone or e-mail
Q:
The requirements of a valid acceptance parallel the requirements for a valid offer.
Q:
A promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty is known as a(n) _____.
A. contract
B. offer
C. consideration
D. acceptance
E. legal object
Q:
What are the elements of a binding contract?
A. Offer, acceptance, consideration, and assent
B. Acceptance, consideration, assent, and legal object
C. Agreement, offer, acceptance, and consideration
D. Agreement, consideration, contractual capacity, and assent
E. Agreement, consideration, contractual capacity, and legal object
Q:
An offer made by one party and accepted by another party is called a(n) _____.
A. legal object
B. agreement
C. coherence
D. alliance
E. concurrence
Q:
An acceptance, which is received after the offer was rejection, is still a valid acceptance.
Q:
Silence can be an acceptance when the offeree receives the benefits of the offered services with reasonable opportunity to reject them and knowledge that some form of compensation is expected, yet remains silent.
Q:
An offeror can revoke the offer at any time.
Q:
An offer by a retailer to purchase seasonal goods from a wholesaler would not lapse before an offer to purchase goods that could easily be sold all year long.
Q:
Silence may constitute acceptance of an offer.
Q:
The mirror-image rule is applicable when a unilateral contract is involved.
Q:
Under the UCC, the agreement begins when the offeror makes an offer to the offeree.
Q:
An offer has two elements, intent and definite and certain terms.
Q:
Courts interpret contracts using an objective standard.
Q:
An offer may be accepted by the offeree to whom an offer is directed or the offeree's agent.
Q:
All contracts deemed valid by the court are enforceable.
Q:
All contracts are either formal contracts or informal contracts, which are also called simple contracts.
Q:
States still require that formal contracts be under seal.
Q:
Quasi-contracts are legally the same as implied-in-law contracts.
Q:
Under a quasi-contract is imposed the amount of damages for a breach which may be awarded is based upon the fair market value of any service provided to the defendant.
Q:
A quasi contract is an agreement by the parties to prevent unjust enrichment.
Q:
A bilateral contract is a promise exchanged for an act.
Q:
In an express contract, all terms of the agreement must be clearly set forth in writing.
Q:
A contract that arises from the conduct of the parties is an implied contract.
Q:
The two primary sources of contract law are the Uniform Commercial Code and Restatement of Contracts.
Q:
The Restatement (Second) of the Law of Contracts is not actually the law itself.
Q:
The Uniform Commercial Code is federal law that was created by Congress.
Q:
All contracts can be classified as either bilateral or unilateral.
Q:
An agreement consists of an offer by one party and acceptance of the terms by the other party.
Q:
An offeree is the party making an offer and the offeror is the party receiving the offer.
Q:
Lack of genuine assent is an element of a valid contract.
Q:
Explain the effect of auctions held with reserve and without reserve, and discuss what happens if nothing is said regarding whether an auction is being held with reserve or without reserve.
Q:
Set forth the ways in which an offer can terminate.
Q:
Wally wants to sell his used computer to Susan for $400. Susan says that she will think about it. Wally tells Susan on Monday that if she wants the computer, she must call him on his cell phone by 6 p.m., the next day. That next morning Susan decides she does want the computer, but she has misplaced Wally's cell phone number. She finds his address in an old campus directory. Therefore, she drops a note to him through U.S. mail telling him that she wants the computer. Meanwhile, on Wednesday, before he gets Susan's acceptance, Wally sells the computer to Alice. When Wally calls Susan to tell her the bad news, Susan tells Wally that she accepted the contract and that under the Mailbox Rule, he is liable to her for damages computed by the difference between $400 and the amount it costs her to obtain a similar computer. Who will win in the dispute between Wally and Susan and why?
Q:
A contract is a set of legally enforceable promises.
Q:
Millie mows her own yard to save money. Her neighbor Paul, however, hires a lawn service to mow his yard. One day Millie is looking out the window and sees Paul's lawn service drive up. Surprisingly, they begin to mow her yard, not Paul's yard. Millie thinks that is great and keeps her mouth shut while they mow the yard. Later, she gets a bill. She calls the owner of the lawn service and says that she does not have to pay because there was no contract by she agreed to have her yard mowed. Discuss whether the lawn service is entitled to any recovery and why or why not.
Q:
Discuss the meaning of a void contract and a voidable contract, and the effect of a determination that a contract is voidable after one party has fully or partially performed.
Q:
Define and give an example of an express contract and an implied contract.
Q:
Saturday Auction. Barry, an auctioneer, was holding an auction on a Saturday morning. At the beginning of the auction, Barry announced that the auction was being held without reserve. Helen, Mary, and Chris were all in attendance. Helen saw an old cash register with a stuck drawer that she thought would look great in her den. The auctioneer put the cash register up for sale, noting that the drawer was stuck and that no one really knew what was inside. Helen bought it for $20. At the same auction, Mary saw a great deal on a used table. She bid $20 on it. No one else bid anything. Barry announced that $20 was clearly insufficient for the table, that it was worth much more than that, and that he was taking it out of the auction. Chris started bidding on a diamond ring for his girlfriend. He bid $2,000. Just as Barry was getting ready to say "Sold", Chris looked over at his girlfriend, decided that he was not sure about marriage, and leaped up yelling, "I revoke." Barry, however, immediately yelled "Sold." When she got it home and broke into it, Helen discovered that the cash register actually contained $5,000. Unfortunately, Helen had a teenage son named Tad who started bragging to his friends about the family's good fortune. Barry heard about what had happened and sued Helen for return of the $5,000. Mary sues Barry attempting to obtain possession of the table. Barry sues Chris attempting to enforce a contract for the sale of the engagement ring. What is the likely result in the lawsuit Barry brought against Chris?
A. Chris will win because he properly revoked his bid before it was accepted.
B. Chris will win because bids made at an auction may be revoked at any time within ten days after the auction.
C. Chris will win because bids made at an auction may be revoked at any time within five days after the auction.
D. Chris will win because bids made at an auction may be revoked at any time within one day after the auction.
E. Barry will win because Chris had no right to revoke the bid.
Q:
Identify and describe the four elements that are necessary for a contract to exist.
Q:
(p. 156) Define a bilateral contract and a unilateral contract, and give an example of each.
Q:
Used Car Sales. Walter sells used cars. He is seeking a way to increase sales and profits because he would like to take his girlfriend on a nice diving trip to the Grand Cayman Islands. The first thing that Walter does is say that during the first week of December, he will give a $500 rebate on used cars under two years old. To spice things up, he also offers to sell any car on the lot that is under five years old for $1,000 to the first three customers who can hula hoop ten hours straight on December 7th. (Hula hooping was a practice popular some years ago in which a person, usually around the waist, would swing around a large hoop.) Walter was not very concerned about the hula hooping issue because he thought that no one would be able to hula-hoop for ten hours straight. Walter put an advertisement pertaining to the rebate and hula-hoop opportunity in the local newspaper. The promotion went over very well. Although he had several on hand, Walter ran out of cars under two years old within one day. During the rest of the week shoppers were told that no cars of that description were available. A customer named Sam was very unhappy when he discovered the next day that no cars under two years old were available. On December 7th, while Walter was watching the hula hoopers, Sally was shopping for a car. She was in college and did not have much money. She saw one, an older car, that she liked but she really did not know if it run or not. She was going to talk to her parents. Walter eventually approached her and Sally asked him if he would take $3,000 for the car. Walter said, "Yes, sold." Sally tried to explain that she needed to talk to her parents first, but Walter would not hear of it. While Walter was still fuming from his encounter with Sally, Zack walked up and started to criticize the nature of Walter's inventory. Walter told him that he had great cars. Zack pointed at an old jalopy that was banged up, had 200,000 miles on it, and a cracked windshield. Zack said, "Sure, I'll pay $10,000 for that car." Walter said, "Sold." Zack said, "Wait a minute. I was only kidding." Walter said, "No way." Meanwhile all the hula hoopers dropped out well prior to ten hours of hula hooping except for Barbara. One minute before the ten hours were up, Walter yelled out "I revoke!" Barbara completed the hula hooping anyway and asked for her car for $1,000. Walter refused saying that the offer was revoked. Sam was very angry and sued Walter for not having a car available that was under two years old so that he could get a good deal and a $500 rebate. Additionally, Barbara sued Walter, and Walter sued Zack and Sally. What is the most likely result in the lawsuit brought by Barbara against Walter?
A. Walter will win because he was only engaged in preliminary negotiations.
B. Walter will win because the advertisement was simply inviting customers, such as Barbara, to make an offer.
C. Walter will win because he properly revoked the offer.
D. Barbara will win because the ad would be treated as an offer that she properly accepted.
E. Barbara will win because she properly made an offer that was accepted by Walter when he allowed her to continue hula hooping.
Q:
Saturday Auction. Barry, an auctioneer, was holding an auction on a Saturday morning. At the beginning of the auction, Barry announced that the auction was being held without reserve. Helen, Mary, and Chris were all in attendance. Helen saw an old cash register with a stuck drawer that she thought would look great in her den. The auctioneer put the cash register up for sale, noting that the drawer was stuck and that no one really knew what was inside. Helen bought it for $20. At the same auction, Mary saw a great deal on a used table. She bid $20 on it. No one else bid anything. Barry announced that $20 was clearly insufficient for the table, that it was worth much more than that, and that he was taking it out of the auction. Chris started bidding on a diamond ring for his girlfriend. He bid $2,000. Just as Barry was getting ready to say "Sold", Chris looked over at his girlfriend, decided that he was not sure about marriage, and leaped up yelling, "I revoke." Barry, however, immediately yelled "Sold." When she got it home and broke into it, Helen discovered that the cash register actually contained $5,000. Unfortunately, Helen had a teenage son named Tad who started bragging to his friends about the family's good fortune. Barry heard about what had happened and sued Helen for return of the $5,000. Mary sues Barry attempting to obtain possession of the table. Barry sues Chris attempting to enforce a contract for the sale of the engagement ring. In the lawsuit in which Barry sues Helen for return of the $5,000, which of the following is the most likely result?
A. Barry will win because when an auction is held without reserve, the auctioneer is entitled to repossess any item at will.
B. Barry will lose only because he was not the actual seller. He was only selling at auction for someone else. The seller, however, would win in an action against Helen.
C. Barry would win because Helen made an insufficient offer.
D. Helen will win only if she can show that Barry had knowledge that cash was in the drawer before he sold it.
E. Helen will win because the auction was without reserve, and she properly bid on and bought the cash register with everyone knowing that the cash drawer was stuck.
Q:
Saturday Auction. Barry, an auctioneer, was holding an auction on a Saturday morning. At the beginning of the auction, Barry announced that the auction was being held without reserve. Helen, Mary, and Chris were all in attendance. Helen saw an old cash register with a stuck drawer that she thought would look great in her den. The auctioneer put the cash register up for sale, noting that the drawer was stuck and that no one really knew what was inside. Helen bought it for $20. At the same auction, Mary saw a great deal on a used table. She bid $20 on it. No one else bid anything. Barry announced that $20 was clearly insufficient for the table, that it was worth much more than that, and that he was taking it out of the auction. Chris started bidding on a diamond ring for his girlfriend. He bid $2,000. Just as Barry was getting ready to say "Sold", Chris looked over at his girlfriend, decided that he was not sure about marriage, and leaped up yelling, "I revoke." Barry, however, immediately yelled "Sold." When she got it home and broke into it, Helen discovered that the cash register actually contained $5,000. Unfortunately, Helen had a teenage son named Tad who started bragging to his friends about the family's good fortune. Barry heard about what had happened and sued Helen for return of the $5,000. Mary sues Barry attempting to obtain possession of the table. Barry sues Chris attempting to enforce a contract for the sale of the engagement ring. What is the likely result in the lawsuit brought by Mary against Barry for the table?
A. Barry will win because Mary was simply making an offer that he was free to decline.
B. Barry will win because the price was clearly insufficient for the table.
C. Barry will win because no acceptance occurred.
D. Mary will win because the auction was without reserve, and Barry had agreed to accept the highest bid.
E. Barry will win because he did not inform attendees in writing that the auction was without reserve.
Q:
Wrong Deck. Penny hires Jackson to paint her back deck on her house. She agrees to pay him $200 for the job, and he accepts, sight unseen. They enter into the agreement on Tuesday, and he is to paint the deck on Saturday. When Jackson arrives, neither Penny nor her neighbor is at home. He mistakenly paints the neighbor's deck. Penny calls him the next day and asks him why he did not paint her deck. He informs her that he did paint the deck. It is then discovered that he mistakenly painted the neighbor's deck. Penny tells him not to worry because the neighbor will be required to pay him. Jackson says that if the neighbor does not pay, then he expects all of his funds from Penny. Which of the following is true regarding Jackson's assertion that Penny must pay him?
A. He is correct because an express contract existed.
B. He is correct because an implied contract existed.
C. He is correct because an implied-in-law contract existed.
D. He is correct because a valid contract existed.
E. He is incorrect unless he can somehow establish that Penny gave him poor directions or was otherwise at fault in informing him which deck to paint.
Q:
Used Car Sales. Walter sells used cars. He is seeking a way to increase sales and profits because he would like to take his girlfriend on a nice diving trip to the Grand Cayman Islands. The first thing that Walter does is say that during the first week of December, he will give a $500 rebate on used cars under two years old. To spice things up, he also offers to sell any car on the lot that is under five years old for $1,000 to the first three customers who can hula hoop ten hours straight on December 7th. (Hula hooping was a practice popular some years ago in which a large hoop would be swung around by a person, usually around the waist.) Walter was not very concerned about the hula hooping issue because he thought that no one would be able to hula hoop for ten hours straight. Walter put an advertisement pertaining to the rebate and hula hoop opportunity in the local newspaper. The promotion went over very well. Although he had several on hand, Walter ran out of cars under two years old within one day. During the rest of the week shoppers were told that no cars of that description were available. A customer named Sam was very unhappy when he discovered the next day that no cars under two years old were available. On December 7th, while Walter was watching the hula hoopers, Sally was shopping for a car. She was in college and did not have much money. She saw one, an older car, that she liked but she really did not know if it run or not. She was going to talk to her parents. Walter eventually approached her and Sally asked him if he would take $3,000 for the car. Walter said, "Yes, sold." Sally tried to explain that she needed to talk to her parents first, but Walter would not hear of it. While Walter was still fuming from his encounter with Sally, Zack walked up and started to criticize the nature of Walter's inventory. Walter told him that he had great cars. Zack pointed at an old jalopy that was banged up, had 200,000 miles on it, and a cracked windshield. Zack said, "Sure, I'll pay $10,000 for that car." Walter said, "Sold." Zack said, "Wait a minute. I was only kidding." Walter said, "No way." Meanwhile all the hula hoopers dropped out well prior to ten hours of hula hooping except for Barbara. One minute before the ten hours were up, Walter yelled out "I revoke!" Barbara completed the hula hooping anyway and asked for her car for $1,000. Walter refused saying that the offer was revoked. Sam was very angry and sued Walter for not having a car available that was under two years old so that he could get a good deal and a $500 rebate. Additionally, Barbara sued Walter, and Walter sued Zack and Sally. Which of the following is the likely result in the lawsuit brought by Sam complaining that Walter ran out of cars available for a rebate?
A. Sam will win because Walter was required to have sufficient cars on hand for anyone who requested one.
B. Sam will win because a rebate was involved.
C. Sam will win because Walter should have run another ad revoking the offer.
D. Sam will lose because he did not properly accept the offer.
E. Sam will lose because court would interpret the intent of Walter as being to invite readers to make an offer that Walter was free to reject.
Q:
Used Car Sales. Walter sells used cars. He is seeking a way to increase sales and profits because he would like to take his girlfriend on a nice diving trip to the Grand Cayman Islands. The first thing that Walter does is say that during the first week of December, he will give a $500 rebate on used cars under two years old. To spice things up, he also offers to sell any car on the lot that is under five years old for $1,000 to the first three customers who can hula hoop ten hours straight on December 7th. (Hula hooping was a practice popular some years ago in which a person, usually around the waist, would swing around a large hoop.) Walter was not very concerned about the hula hooping issue because he thought that no one would be able to hula-hoop for ten hours straight. Walter put an advertisement pertaining to the rebate and hula-hoop opportunity in the local newspaper. The promotion went over very well. Although he had several on hand, Walter ran out of cars under two years old within one day. During the rest of the week shoppers were told that no cars of that description were available. A customer named Sam was very unhappy when he discovered the next day that no cars under two years old were available. On December 7th, while Walter was watching the hula hoopers, Sally was shopping for a car. She was in college and did not have much money. She saw one, an older car, that she liked but she really did not know if it run or not. She was going to talk to her parents. Walter eventually approached her and Sally asked him if he would take $3,000 for the car. Walter said, "Yes, sold." Sally tried to explain that she needed to talk to her parents first, but Walter would not hear of it. While Walter was still fuming from his encounter with Sally, Zack walked up and started to criticize the nature of Walter's inventory. Walter told him that he had great cars. Zack pointed at an old jalopy that was banged up, had 200,000 miles on it, and a cracked windshield. Zack said, "Sure, I'll pay $10,000 for that car." Walter said, "Sold." Zack said, "Wait a minute. I was only kidding." Walter said, "No way." Meanwhile all the hula hoopers dropped out well prior to ten hours of hula hooping except for Barbara. One minute before the ten hours were up, Walter yelled out "I revoke!" Barbara completed the hula hooping anyway and asked for her car for $1,000. Walter refused saying that the offer was revoked. Sam was very angry and sued Walter for not having a car available that was under two years old so that he could get a good deal and a $500 rebate. Additionally, Barbara sued Walter, and Walter sued Zack and Sally. What is the likely result in Walter's lawsuit against Sally in which he claims that she must pay $3,000 for the car at issue?
A. Walter will win because Sally made an offer that he properly accepted, regardless of whether the offer was a reasonable one.
B. Walter will win only because Sally agreed to pay a reasonable amount for the vehicle and he properly accepted the offer.
C. Walter will lose because he did not properly accept Sally's offer.
D. Sally will win because she merely expressed interest and did not make an offer.
E. Sally will win because no contract was in writing.
Q:
Used Car Sales. Walter sells used cars. He is seeking a way to increase sales and profits because he would like to take his girlfriend on a nice diving trip to the Grand Cayman Islands. The first thing that Walter does is say that during the first week of December, he will give a $500 rebate on used cars under two years old. To spice things up, he also offers to sell any car on the lot that is under five years old for $1,000 to the first three customers who can hula hoop ten hours straight on December 7th. (Hula hooping was a practice popular some years ago in which a person, usually around the waist, would swing around a large hoop.) Walter was not very concerned about the hula hooping issue because he thought that no one would be able to hula-hoop for ten hours straight. Walter put an advertisement pertaining to the rebate and hula-hoop opportunity in the local newspaper. The promotion went over very well. Although he had several on hand, Walter ran out of cars under two years old within one day. During the rest of the week shoppers were told that no cars of that description were available. A customer named Sam was very unhappy when he discovered the next day that no cars under two years old were available. On December 7th, while Walter was watching the hula hoopers, Sally was shopping for a car. She was in college and did not have much money. She saw one, an older car, that she liked but she really did not know if it run or not. She was going to talk to her parents. Walter eventually approached her and Sally asked him if he would take $3,000 for the car. Walter said, "Yes, sold." Sally tried to explain that she needed to talk to her parents first, but Walter would not hear of it. While Walter was still fuming from his encounter with Sally, Zack walked up and started to criticize the nature of Walter's inventory. Walter told him that he had great cars. Zack pointed at an old jalopy that was banged up, had 200,000 miles on it, and a cracked windshield. Zack said, "Sure, I'll pay $10,000 for that car." Walter said, "Sold." Zack said, "Wait a minute. I was only kidding." Walter said, "No way." Meanwhile all the hula hoopers dropped out well prior to ten hours of hula hooping except for Barbara. One minute before the ten hours were up, Walter yelled out "I revoke!" Barbara completed the hula hooping anyway and asked for her car for $1,000. Walter refused saying that the offer was revoked. Sam was very angry and sued Walter for not having a car available that was under two years old so that he could get a good deal and a $500 rebate. Additionally, Barbara sued Walter, and Walter sued Zack and Sally. What is the likely result in the lawsuit brought by Walter against Zack?
A. Walter will win because Zack properly made an offer that Walter accepted.
B. Zack will win because he was merely expressing possible interest.
C. Zack will win because Walter did not properly accept.
D. Zack will win because under a subjective standard he was joking.
E. Zack will win because under an objective standard, it appears he was joking.
Q:
Refusal to Pay. Business law teacher, Debby needed some yard work done. She told her class that she would give $50 to the first person who mowed her yard. She also entered into an agreement with Brenda to trim some shrubbery for $40. Max went to mow Debby's yard. Unfortunately, just as he finished mowing, a neighborhood dog bit him, and he had to go to the emergency room for a couple of stitches. Debby refused to pay Max on the basis that the agreement was not in writing and that Max ended up being more trouble than he was worth. Max refused to pay the emergency room because he said that they did not have a binding, bilateral contract. Brenda refused to trim the shrubbery because she got a better offer and claimed that she was not bound on the contract until she started to perform. Which of the following is true regarding Max's statement that he did not have to pay the emergency room charges?
A. He is correct.
B. He is incorrect because there was a bilateral, express contract.
C. He is incorrect because there was a unilateral, express contract.
D. He is incorrect because there was an express, trilateral contract.
E. He is incorrect because there was a binding implied contract.
Q:
Wrong Deck. Penny hires Jackson to paint her back deck on her house. She agrees to pay him $200 for the job, and he accepts, sight unseen. They enter into the agreement on Tuesday, and he is to paint the deck on Saturday. When Jackson arrives, neither Penny nor her neighbor is at home. He mistakenly paints the neighbor's deck. Penny calls him the next day and asks him why he did not paint her deck. He informs her that he did paint the deck. It is then discovered that he mistakenly painted the neighbor's deck. Penny tells him not to worry because the neighbor will be required to pay him. Jackson says that if the neighbor does not pay, then he expects all of his funds from Penny. What was the status of the agreement between Jackson and Penny as of Tuesday when they agreed upon the price for the job?
A. The contract was executory.
B. The contract was executed.
C. The contract was notated.
D. The contract was formal.
E. The contract was a recognizance contract.
Q:
Wrong Deck. Penny hires Jackson to paint her back deck on her house. She agrees to pay him $200 for the job, and he accepts, sight unseen. They enter into the agreement on Tuesday, and he is to paint the deck on Saturday. When Jackson arrives, neither Penny nor her neighbor is at home. He mistakenly paints the neighbor's deck. Penny calls him the next day and asks him why he did not paint her deck. He informs her that he did paint the deck. It is then discovered that he mistakenly painted the neighbor's deck. Penny tells him not to worry because the neighbor will be required to pay him. Jackson says that if the neighbor does not pay, then he expects all of his funds from Penny. Which of the following is correct regarding Penny's assertion that the neighbor will be required to pay Jackson?
A. She is correct. The neighbor will be required to pay Jackson under a theory of quasi-contract.
B. She is correct. The neighbor will be required to pay Jackson based upon an implied-in-fact contract.
C. She is correct. The neighbor will be required to pay Jackson based upon an implied-in-law contract.
D. She is correct. The neighbor will be required to pay Jackson based upon an express contract.
E. She is incorrect. The neighbor will not be required to pay Jackson.
Q:
Refusal to Pay. Business law teacher, Debby needed some yard work done. She told her class that she would give $50 to the first person who mowed her yard. She also entered into an agreement with Brenda to trim some shrubbery for $40. Max went to mow Debby's yard. Unfortunately, just as he finished mowing, a neighborhood dog bit him, and he had to go to the emergency room for a couple of stitches. Debby refused to pay Max on the basis that the agreement was not in writing and that Max ended up being more trouble than he was worth. Max refused to pay the emergency room because he said that they did not have a binding, bilateral contract. Brenda refused to trim the shrubbery because she got a better offer and claimed that she was not bound on the contract until she started to perform. Which of the following is correct regarding Brenda's statement that she was not bound on any contract?
A. Brenda is correct. There was no contract because she had not started working.
B. Brenda is incorrect because there was a bilateral, express agreement.
C. Brenda is incorrect because there was a bilateral, implied agreement.
D. Brenda is incorrect because there was a unilateral, express agreement.
E. Brenda is incorrect because there was a unilateral, implied agreement.
Q:
Refusal to Pay. Business law teacher, Debby needed some yard work done. She told her class that she would give $50 to the first person who mowed her yard. She also entered into an agreement with Brenda to trim some shrubbery for $40. Max went to mow Debby's yard. Unfortunately, just as he finished mowing, a neighborhood dog bit him, and he had to go to the emergency room for a couple of stitches. Debby refused to pay Max on the basis that the agreement was not in writing and that Max ended up being more trouble than he was worth. Max refused to pay the emergency room because he said that they did not have a binding, bilateral contract. Brenda refused to trim the shrubbery because she got a better offer and claimed that she was not bound on the contract until she started to perform. Which of the following is an appropriate characterization of the agreement between Debby and Max?
A. They had a bilateral, express contract.
B. They had a bilateral, implied contract.
C. They had a bilateral and unilateral contract.
D. They had a unilateral contract.
E. They did not have any type of enforceable agreement.
Q:
What was the result in Janky v. Batistatos, Lake County Conventions & Visitations Bureau, the case in the text in which it was claimed that an e-mail constituted acceptance of a settlement offer?
A. That the e-mail was insufficient to constitute an acceptance because of its electronic nature.
B. That the e-mail was insufficient to constitute an acceptance because no settlement funds were forwarded in conjunction with the e-mail.
C. That the e-mail was insufficient to constitute an acceptance because the parties had not specifically agreed that acceptance could be made in that manner.
D. That the e-mail was insufficient to constitute an acceptance because it was insufficiently specific.
E. That the e-mail was sufficient to constitute an acceptance.
Q:
Which of the following modifies the mirror-image rule?
A. The Absolute Business Code.
B. The Uniform Commercial Code.
C. The Governing Business Agreement.
D. The International Business Code.
E. None of these because the common law has not been modified.
Q:
Which of the following is true if no means of communicating an acceptance is specified in an offer?
A. The acceptance must be in writing.
B. The acceptance must be made verbally either by telephone or in person.
C. No valid contract may be entered into because the offer must specify a means by which to accept.
D. Acceptance may be made by any reasonable means.
E. Acceptance must be made orally or in writing within twenty-four hours.
Q:
Which of the following provides that an acceptance is valid when it is placed in the mailbox?
A. The acceptance rule.
B. The contract rule.
C. The reasonable rule.
D. The mailbox rule.
E. The contract legality rule.
Q:
Which of the following provides that a revocation is effective only when received by the offeree?
A. The acceptance rule.
B. The contract rule.
C. The reasonable rule.
D. The mailbox rule.
E. The contract legality rule.
Q:
Inez, wishing to sell a used business law book, calls Janice and tells her that if she does not hear from her within twenty-four hours, she will assume that Janice wishes to purchase the book for $50. After the expiration of twenty-four hours, which of the following is correct regarding the status of the proposed book sale?
A. There is no contract because silence, as a general rule, cannot be used to form a contract.
B. There is no contract because the offer was not made in person.
C. There is no contract because the offer was not made in writing.
D. Janice can avoid there being a contract only if she can prove by preponderance of the evidence that she did not hear about the offer before the stated expiration time.
E. Janice can avoid this being a contract only if she can prove beyond a reasonable doubt that she did not hear about the offer before the stated expiration time.