practice test 2 Flashcards
Which of the following contracts must be in writing?
All of the contracts must be in writing.
A plaintiff who knows there is a substantial danger associated with certain conduct and goes ahead with the dangerous activity anyway gives the tortfeasor the defense of:
“Assumption of the risk.”
Theo wanted to buy a piece of property to build a painting supply factory. He asked Vincent, the owner of the property, if it was zoned for such manufacturing. Vincent told him “Yes, absolutely.” This was a lie; it was only zoned for residential use. Theo bought the land at a premium price of $20,000 an acre in reasonable reliance upon Vincent’s promise and then was shocked when he was told by the zoning board that he could not build his factory. Because of this, the land was worth a fraction of what Theo paid. Under which of the following theories should Theo sue Vincent?
Fraudulent misrepresentation
Honest Bill the used car salesperson told Fran, a prospective customer, that the car she was considering had only been driven by a little old lady on Sunday and had only 30,000 miles on it. Honest Bill knew this was a lie and that the mileage had been altered, as the car actually had 230,000 miles on it. Which of the following would Honest Bill’s actions be if Fran buys the car in reasonable reliance upon his lies and the car breaks down a week after she buys it?
“Fraudulent misrepresentation.”
Austin contracted to paint Nygee’s house. Nygee specified a certain brand of paint that she always used on her house. She told Austin that her great grandfather had founded the paint company. Austin secretly used a different brand of paint because he got a half price deal on it and could increase his profits by $1,000. He never told Nygee what he had done. The paint Austin used was similar in quality to what Nygee had ordered, there was no material variation in that, and the job looked good. However, it was not per Nygee’s intentions. Nygee found out when she saw the brand of the paint that Austin’s secretary had inadvertently typed on the invoice. Nygee refused to pay. Austin has claimed he substantially performed and sued for payment. What result?
“This is not substantial performance because Austin did not act in good faith.”
The Uniform Electronic Transactions Act (UETA) and E-Sign Act do which of the following?
They establish that, where the statute of frauds requires a contract to be evidenced by a signed writing, an electronic record and electronic signature will meet that requirement.
Rachel ran a food truck business. Willow told several of Rachel’s customers that in her opinion, Rachel was the “biggest jerk” she knows. As a result, some of Rachel’s customers stopped buying food from her truck. Rachel is considering a lawsuit against Willow for defamation. Assuming you are Rachel’s legal counsel, what is the best and most accurate legal advice?
Rachel does not have a good case for defamation because Willow’s statement is pure opinion.
TechnoPlus, a corporation that sold high-end digital printer/copiers, entered into a written contract with Wesley, a lawyer, which included a payment of $500 per month for the printer/copier itself and $200 a month for a service agreement. The sales representative and Wesley negotiated the price of this contract in a series of email and personal exchanges. Which of the following describes this type of contract?
Hybrid and express
Stokes signed a contract to purchase a car from a dealer, Othick, for $15,000. However, when the contract was examined closely, a decimal point was inadvertently put in and the contract called for Stokes to get the car for $150. Stokes is attempting to enforce the contract against Othick for $150. Othick wants the court to change the contract to $15,000, which he claims is the true intent of the parties. What remedy should Othick pursue with the court?
Reformation
Scott, who is 15–years old, purchased a laptop computer on a lease plan for $100 a month over 18 months from Laptops-R-Us. Under the law of contracts, this is:
“A voidable contract.”
Dirk is the delivery driver for Papa Pepperoni’s Pizza. On a delivery he spotted Marvin, his main competition for the affections of his girlfriend Jolene. He accelerated his truck and hit Marvin, breaking both his legs. Under these circumstances, this is:
“An intentional tort.”
In which of the following scenarios would enforcement of specific performance be appropriate?
“Vincent, an art dealer, contracted with Jackson to purchase his original Picasso painting for $10 million, but when Vincent arrived to pick up the painting, Jackson told him he had changed his mind and would not honor the contract, because he could not bear to part with it.”
Jeff purchased a new Corvette from Hypersports Automotive on a three-year lease. Two years in, he lost his job as marketing director and was unemployed. Jeff asked the leasing company if his friend Addie could substitute for him and take over the lease. If Hypersports allows Jeff out of the lease with no further obligations and Addie completely takes his place, what has occurred?
“A novation.”
Aaron has entered into a contract with Wilson, a man who is elderly and suffers from dementia and was unable to understand the nature of the contract he was signing. Wilson had not been legally declared to be incompetent at the time the contract was signed. It was an agreement for Aaron to mow Wilson’s lawn each week in consideration of $50, which is a fair price for the service. Aaron was not aware that Wilson had dementia. What is the legal status of this agreement?
“It is a voidable contract.”
After finishing an internship while a student, Danielle received an offer for employment as a staff tax accountant for Lincoln, Roosevelt and Reagan, CPAs, to start on August 1st, after she finished her master’s degree in accountancy. Included in the contract was the following provision: “This contract shall be cancelled if the prospective employee fails to pass the CPA exam prior to the start date of employment.” Which of the following types of conditions is this provision?
Precedent
Kirsten entered into a contract with Brando to remodel Brando’s kitchen, as he was putting his house on the market. The contract specifically states that the job was to be completed by June 1st. Kirsten completed the remodeling on June 5th. Brando has suffered no loss due to the delay, as no prospective buyers came out to see his house in the first week it was on the market. The job was otherwise done exactly to all contract requirements and specifications. If Brando sues Kirsten for breach of contract due to the missed completion date and if the courts were to award damages, what type of damages would most likely be awarded?
“Nominal damages.”
Which of the following contracts has a nuclear condition?
A contract in which ABC Corporation reserves the right to cancel a real estate sale agreement completely if the purchaser, XYZ Corporation, is unable to obtain financing to ABC’s sole satisfaction.
Sharice was working on a scaffolding 20 feet above the ground when she carelessly tossed her power drill to a co-worker. It fell to the ground and landed on Gardner, a visitor to the construction site, injuring him. What category of tort is this?
Negligence
Lanza was just hired to work for a government defense contractor. A clause in the contract calls for Lanza to pass a background check before he can work in the job, as a security clearance is required for all employees. If he cannot pass the background check and get appropriate security clearance, he cannot have the job and the employment contract will be voided. This clause would be a:
a condition precedent.
Which of the following is classified as liquidated damages?
“Deb paid her rent late and her landlord said that she would have to pay the additional $25 late fee that was specified in her rental agreement.”
