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Posted: October 20th, 2022
Boris skydives from a
plane and gets tangled in a tree, hopelessly suspended and swinging
precariously in his parachute from the branches of the tree. Natasha sees that
he is in trouble and comes to his rescue. Once Boris is safely on the ground,
he gratefully promises to give Natasha half of his life savings account. When
he changes his mind, Natasha will probably be unsuccessful in enforcing his
promise.
True
False
Bud calls Lou and
says, “I’ll sell you my car for a thousand bucks, interested?” Lou
says, “I’ll look it up on the Internet. If the Blue Book price is close,
I’ll pay you $1,000 in the morning.” At sunrise Lou shows up with $1000.
Bud must sell him the car because Lou accepted the evening
before when he promised to look up the car’s value.
Bud must sell him the car because he cannot revoke his offer
after Lou accepted.
Bud does not have to sell the car because his promise was
unclear.
Bud does not have to sell the car because the payment is
based on past consideration.
Which of the
following is not required for promissory estoppel to apply?
The promise made must be reasonable.
The promise made must be relied on by the promisee to the
promisee’s detriment.
The promisor must suffer an injustice if the promise isn’t
enforced.
The promisor must know that the promisee is likely to rely
on the promise.
Big Time Appliance
advertised 46-inch plasma TVs for $10 to the first 50 buyers on Friday. This ad
is:
not a valid offer because it is not a specific commitment to
sell.
not a valid offer but, rather, invites the buyer to make an
offer.
a valid offer because it is specific enough to constitute a
unilateral contract.
a valid offer because it requires a certain manner of
acceptance.
Jeff goes to a car
dealership and the salesperson tells him that the car he’s looking at is a
great car and an excellent value. The statements made by the salesperson, if
untrue, will not be adequate to create either an innocent misrepresentation or
a fraudulent misrepresentation.
True
False
Amanda, a recent
university graduate, needed a car to get to her new job. To help Amanda secure
a loan for the car, Ted, a friend, agreed to pay the loan should Amanda
default. Ted’s promise is enforceable as long as he goes to the bank, declares
his promise to guarantee Amanda’s loan in front of witnesses, and shakes hands
on the deal, giving his word.
True
False
Josh is negotiating
the sale of his car with Jonathan. Jonathan asks if the car has ever been in an
accident, and Josh replies, “No, it has never been in an accident.”
In fact, the car was nearly totaled the year before when Sheila, Josh’s
girlfriend, was driving Josh’s car, hit a wet spot, and skidded into a pole.
She had the car repaired without telling him about the accident. Josh has
committed:
fraudulent misrepresentation.
innocent misrepresentation.
an unconscionable act.
no misrepresentation because he thought he was being
truthful and didn’t intend to deceive Jonathan.
n offer may be
terminated in all but which of the following ways?
acceptance
revocation
rejection
counteroffer
Moe has entered into
a contract with Larry. Subsequently, Moe assigns his rights in that contract to
Curley. Which of the following would not prevent that assignment?
The contract contains an antiassignment clause.
The assignment would materially alter Larry’s duties and
cause an increased burden or risk to Larry.
Larry protests the assignment and demands that Moe not make
the assignment.
The assignment would violate public policy matters.
When an assignment is
made, the assignee has the right to reform the contract and change the
obligor’s rights and duties as the assignee wishes.
True
False
George has entered
into a contract with Mark to supply raw materials to Mark’s factory. The
contract does not contain an antidelegation clause. George then delegates his
duty to supply the raw materials to Wayne, a competitor of Mark. This is a
valid delegation.
True
False
Liquidated damages
must be directly related to the breach of contract they are compensating the
nonbreaching party for.
True
False
Craig is a licensed
plumber and has a contract to install a replacement toilet for Mary. When Craig
realizes that he has booked two appointments simultaneously, he calls Brian,
another licensed plumber, and asks him to install Mary’s toilet. Craig has
assigned his duties to Brian.
True
False
Oscar is speeding and
driving inattentively when he runs into Felix, who is driving very cautiously.
As a result of the accident, Felix’s car needs $2,500 worth of repairs and
Felix loses a week’s salary because he has to take off from work to recover
from injuries sustained during the crash.
Both the repairs and the lost wages are compensatory
damages.
The repairs are compensatory damages, and the lost wages are
consequential damages.
The repairs are consequential damages, and the lost wages
are compensatory damages.
Both the repairs and the lost wages are consequential
damages.
Fred’s Flooring (FF)
contracted with Harry homeowner to install wood flooring throughout Harry’s
home. Harry was to purchase the flooring, and the contract was solely for
installation. Payment was to be 20 percent at the time that the work commenced
and 80 percent once the flooring was installed. Harry purchased the flooring
materials and paid the 20 percent, so FF began work. When FF’s work was halfway
completed, Harry realized that he didn’t have the money to pay FF on
completion, so he bolted the doors and refused access. If FF wants to rescind
the contract and be paid for work completed, FF would sue for:
compensatory damages.
consequential damages.
restitution.
liquidated damages.
A rescission of a
contract may occur when either party chooses to end the agreement.
True
False
The only state that
has not adopted the UCC is:
California.
Louisiana.
Texas.
Arizona.
Which of the
following items would be properly subject to a UCC sales contract?
a house
a Christmas tree sold in a parking lot
rights to a patent
an employment contract
On February 1,
Frank’s Fedora Manufacturers sends an offer to Metropolitan Outfitters by
letter with all price, quality, quantity, and delivery terms clearly stated,
indicating that the offer will remain open until October 1. On September 1
Metropolitan sends an acceptance of the offer to Frank’s with no material
alterations to any of the stated terms in the offer. The acceptance makes the
contract valid and enforceable.
True
False
Absent specific
agreements between the parties, the reasonableness requirement of the UCC
governing delivery of goods requires each of the following except:
the goods must be delivered in one shipment.
â¬
the goods must be delivered at a reasonable hour.
the goods must be delivered on a weekday.
the goods must be delivered in a reasonable manner.
UCC risk of loss
provisions will govern the terms of a contract even if the parties have
specified risk allocation in the contract.
True
False
If the seller ships
conforming goods, the buyer has a duty to accept them and may not reject the
goods.
True
False
Johnson Builders is
selling a newly built home to Sheila. JRK Realtors is handling the transaction.
This sale is covered under Article 2 of the UCC.
True
False
Wrongfully revoking
an acceptance will constitute a breach of contract by the buyer.
True
False
The International
Chamber of Commerce abbreviation indicating that goods are to be picked up by
the buyer and not delivered is:
EXW.
FAS.
â¬
FOB.
FCA.
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