Test 2 Flashcards
Lou sends a letter to his niece Mary saying that he will giver her $5000 if she does not smoke before she is 25. Mary complies, but Lou refeuses to pay her the money. Low says ther was no consideration for his promise.
there was a contract, because the promise not to smoke was consideration
Larry’s Corner Grocery has replaced its office equipment and is selling the old equipment. Crystal buys a computer from the store for $450 in cash. Nothing is written down about the transaction. Although the computer worked fine when she tested it at the store, shortly after Crystal starts using it at home, it stops working. Crystal learns that the hard drive is damaged beyond repair. Can Crystal pursue Larry’s Corner Grocery for breach of warranty under Article 2 of the Uniform Commercial Code?
No, because the store was not a merchant
A unilateral contract is formed by an exchange of promises
False
What are liquidated damages
an amount of damages agreed upon in advance
Mae and Rocco make a verbal agreement for Mae to buy Rocco’s house for $250,000. Mae asks if Rocco can give her something in writing so she can apply for financing, and Rocco gives her a signed letter that says, “I hereby agree to sell my house at 1164 Morning Glory Circle to Mae.” The next day, Rocco gets an offer from Charlie, who is willing to pay $300,000 for the house. If Rocco sells the house to Charlie instead of Mae, will he be breaching a contract?
No, because the written agreement does not satisfy the Statute of Frauds
No, because the written agreement does not satisfy the Statute of Frauds
the UCC permits terms to be added into a contract or filled in as gap fillers; however , a contrct between merchants cannot be enforced unless the parties have agreed to and specified a price in their agreement
false
Jake lost his wallet and put an ad in the online student newspaper saying “Lost wallet. Reward $100. Call Jake.” Melanie, a classmate of Jake’s, saw the ad, and spent two days looking for the wallet, missing three classes. Jake later found his wallet in the student parking lot. When Jake found out about all the work Melanie had done, he thanked her, but didn’t give her $100 or anything for her troubles. Which of the following is true of this situation?
Jake offered a unilateral contract, and Melanie is entitled to nothing because she did not perform.
Hipster Bicycles ordered 10,000 bicycle wheels from Bicycle wheels incorporated with delivery to be made on October 30
BWI’s sole manufacturing plant burned down on October 1, yet the CEO of BWI insists that the company will rebuild and honor the contact
Skip rented a car from Trusty Rentals for $50 a day for five days total. When he arrived at the Trusty, they were out of usable cars. Skip had to use the only other rental place in town, Super Rentals, and pay $90 per day for the five days. If Skip sues Trusty for damages and wins
he will be entitled to compensatory damages in the amount of $200.
“Kirsten entered into a contract with Brando to remodel Brando’s kitchen by June 1st, 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. Max 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
Diana meets Lyrick at a party and is instantly taken with her. The feeling is not mutual, but Lyrick does not want to hurt Diana’s feelings. She tells her that she has to run, “but I’ll call you next week.” Diana does not believe her, so Lyrick says she will give Diana the necklace she is wearing if she doesn’t call by Thursday. Does Lyrick’s promise create a security interest in the necklace?
No, because value was not given
Jorge owes his neighbor Leon $500 for helping him prepare the income taxes for his home business. Jorge does not deny owing the money, but for one reason or another he has not paid. Leon has started to step up efforts to get his money. He sends Jorge postcards asking when he will be paid, he telephones him every other evening as soon as Jorge gets home from work, and every time Leon sees Jorge he asks politely if he would like to set up a payment plan. Is Leon violating the Fair Debt Collection Practices Act (FDCPA)?
No, becasue Leon is collecting his own debt
possession of collateral by a secured party is a valid method of perfecting a security interest
true
In chapter 11, creditors create a reorganization plan for the debtor, which outlines a specific strategy and financial plan for emerging from financial distress
Fasle
Patios R Us contracts with Karls concrete to have 35 yards of concreate d
true
