Exam 2 Flashcards

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1
Q

Contract

A

a promise for the breach of which the law gives a remedy or the performance of which the law in some way recognizes as a duty

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2
Q

types of contracts

A

bilateral, unilateral, executory,executed, express, implicit,

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3
Q

bilateral contract

A

both parties make a promise

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4
Q

unilateral contract

A

one party makes a promise that the other party can accept only by ACTUALLY doing something

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5
Q

executory contract

A

one or more parties have not yet fulfilled their obligations

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6
Q

executed contract

A

all parties have fulfilled their obligations

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7
Q

specific types of contracts

A

valid, unenforceable agreement, voidable, void

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8
Q

express contract

A

two parties explicitly state all the important terms of their agreement

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9
Q

implicit contract

A

the word and conduct of the parties indicate that they intended an agreement

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10
Q

sources for contract law

A

restatement of contracts, uniform commercial code, common law

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11
Q

elements of a contract

A

offer, acceptance, consideration, capacity, legality, barriers to enforcement

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12
Q

statute of frauds

A

regulates contracts that must be in writing to be enforced

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13
Q

parol (spoken) evidence rule

A

governs admission of non-written evidence about agreement, arising before or at time of signing

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14
Q

what is used to determine if a performance has occurred?

A

substantial performance, material breach, excuses non breaching party, nonbreaching party may seek damages

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15
Q

factors for determining material breach

A

lost benefit to the injured party
can the injured party be compensated
forfeiture by the breaching party
likelihood of cure
good faith and fair dealing

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16
Q

contracts are discharged by anticipatory repudiation by

A

agreement or impossibility

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17
Q

commercial impracticability

A

event neither party anticipated makes fulfilling the contract extraordinarily difficult and unfair for one party

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18
Q

frustration of purpose

A

event neither party anticipated means contract now has no value for one party

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19
Q

type of monetary damages

A

consequential and incidental

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20
Q

liquidated damage

A

pre-negotiated amount that the parties have agreed about beforehand, if there is a breach of contract

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21
Q

mitigated damages

A

injured party must act reasonably to minimize his losses

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22
Q

types of remedies

A

monetary damages, incidental, non-monetary damages, reformation

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23
Q

sale

A

passing of title from seller to buyer for a price

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24
Q

goods

A

things movable at the time of identification to the contract

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25
Q

warranty

A

a promise on which one can rely

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26
Q

merchantability

A

goods are fit for the ordinary purpose for which they are sold

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27
Q

what does the Magnuson-Moss Warranty Act do?

A

regulates terminology and does not require sellers to provide any warranties

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28
Q

full warranty

A

repair or replace free or charge

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29
Q

limited warranty

A

there is some sort of charge involved

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30
Q

valid contract

A

satisfies all of the law’s requirements

31
Q

unenforceable agreement

A

the parties intend to form a valid bargain, but a court declares that some rule of laws prevents enforcing it

32
Q

voidable contract

A

the law permits one part to terminate the agreement

33
Q

void contract

A

neither party can enforce the contract because the purpose of the deal is illegal and/or one of the parties had no legal authority to make a contract

34
Q

disaffirmance

A

individuals reject contract made while a minor

35
Q

individuals who lack the capacity to make a contract

A

minors, intoxicated persons, and mentally incompetent persons

36
Q

types of unconscionable contracts

A

procedural and substantive

37
Q

barriers to enforcement

A

lack of genuine assent, mistake, fraudulent misrepresentation, undue influence, duress

38
Q

fraudulent misrepresentation

A

deception involved in a deal of some sort

39
Q

elements of fraudulent misrepresentation

A

false statement of material fact, speaker intends other part to rely on statement, and the other party justifiably relies

40
Q

undue influence (as a barrier to enforcement)

A

relationship of trust

41
Q

duress ( as a barrier to enforcement)

A

improper threat that leaves no reasonable alternative

42
Q

what the writing of a statute of frauds most contain

A

a signature of “party to be charged with the contract”
no specific required form

43
Q

what does the statue of frauds do?

A

regulates contracts that must be in writing to be enforced

44
Q

contracts that have to be in writing

A

for sale of real property
contracts that cannot be performed within one year by the provided terms
contracts to guarantee someone else’s debt
promises in consideration of marriage
sale of goods costing $500 or more

45
Q

Factors for determining if performance has occurred

A

substantial performance
material breach
excuses nonbreaching party
nonbreaching party may seek damages

46
Q

types of remedies

A

monetary damages
non-monetary damages (equitable remedies)
reformation

47
Q

types of monetary damages

A

consequential and incidental

48
Q

sale (warranty definition)

A

passing of title from seller to buyer for a price

49
Q

goods ( warranty definition)

A

things movable at the time of identification to the contract

50
Q

Magnuson-Moss Warranty Act

A

does not require sellers to provide any warranties and regulates terminology

51
Q

full warranty

A

repair or replace free of charge

52
Q

limited warranty

A

there is some sort of charge involved

53
Q

what is product liability based on

A

Negligence

54
Q

what are the penalties of FTC?

A

counter-advertising/ corrective advertising

55
Q

what does the FTC act prohibit?

A

unfair and deceptive acts/ practices
bait and switch advertisement

56
Q

what do state usury laws regulate?

A

max interest rate that may be changed on loan

57
Q

types of credit protections

A

fair credit billing act
fair credit reporting act
fair debt collection practices act
equal credit opportunity act
CARD act
Fair and Accurate Credit transactions act

58
Q

fair credit billing act

A

credit card issues must acknowledge and investigate complaints

59
Q

fair credit reporting act

A

consumer credit report can only be used for legitimate business needs

60
Q

fair debt collection practices act

A

limits ability of debt collectors to use unfair or abusive tactics

61
Q

equal credit opportunity act

A

prohibits nay creditor from discrimination against borrowing because of race, color, national origin, sex, martial status, age or because the borrower is receiving welfare.

62
Q

Credit Card Accountability, Responsibility, and Disclosure (CARD) Act

A

prohibits certain practices such as:
~ “unfair” increases in rates or fees
~ due dates on weekends or middle of the day
~ issuing credit cards to those under 21

63
Q

fair and accurate credit transactions act

A

consumers are entitled by law to one free credit report per year from each of the major reporting agencies

64
Q

agency formed by agreement

A

two people agreeing on what they are wanting to do

65
Q

agency formed by ratification

A

person chooses to accept actions taken by another

66
Q

agency formed by estoppel

A

representation made “principal” to third party causes one to be recognized as “principal’s” agent

67
Q

ways to form agencies

A

operation of law
estoppel
ratification
agreement

68
Q

duties of principal to agent

A

compensation
reimbursement/ indemnification
cooperation

69
Q

express authority of agents

A

based on representation between principal and agent

70
Q

implied authority

A

exists because of custom or position occupied or because reasonable necessary to carry out express authority

71
Q

apparent authority

A

principal causes third party to believe agent has particular ability to act

72
Q

detour

A

a MINOR deviation from work routine
–> principal is liable

73
Q

Frolic

A

a MAJOR deviation for agent’s own purposes
–> principal is not liable

74
Q

ways that an agency relationship can be terminated

A

by the parties
by operation of law