TEST 3

Question 1

Bret enters into a contract with Collegiate University over the Internet to take an online course titled “Internet Law.” This is an e-contract because:

Answer 1

the contract was entered into over the Internet.

Question 2

Wanda tells Vito that she would like to buy his Chocolate Goodies store. Vito declines, but later decides to sell and sends to Wanda, and others, a flyer describing the details. Wanda responds with a letter of “acceptance.” Wanda and Vito have:

Answer 2

no contract, because Vito sent the letter to more than one party.

Question 3

Tomato Farms (TF) offers to sell United Grocers, Inc., a boxcar load of tomatoes. The offer is sent via fax. An acceptance is required urgently. It would be most reasonable for United to accept via:

Answer 3

a fax sent to TF as soon as the offer is received.

Question 4

Corner Convenience Store (CCS) takes out a full-page ad in a local newspaper and runs a thirty-second commercial on a local television station, offering a reward for information leading to the apprehension of a certain criminal. CCS could normally terminate the offer by placing:

Answer 4

a full-page ad in the local paper and a thirty-second commercial on the local station.

Question 5

An acceptance that materially changes a term in the offer will still be considered an acceptance.

Answer 5

False

Question 6

Jane offers to sell Kyle three desks for his Lights & Lamps Company administrative office. Kyle sends a rejection first, then changes his mind and sends an acceptance. Whether they have a contract is determined by:

Answer 6

whether Kyle’s rejection or acceptance is received first.

Question 7

Grant offers to sell his Honda Civic for $10,000 to Ivy. Referring to the prices for similar Hondas, Ivy says, “I’ll pay no more than $5,000.” Grant says, “Forget it.” Grant’s offer was terminated by:

Answer 7

Ivy

Question 8

An offer must be communicated to the offeree to be effective

Answer 8

True

Question 9

Business Properties, Inc. (BPI), offers to sell a warehouse to Corporate Investments. Corporate says that it will pay BPI $100 to hold the offer open for three business days. This:

Answer 9

makes the offer irrevocable for three days if BPI accepts.

Question 10

Wally’s Warehouse offers to sell a certain used forklift to Value Lumber Outlet, but it is stolen before Value accepts. Most likely, Wally’s must obtain:

Answer 10

nothing for Value because the theft terminated the offer.

Question 11

Elin decides to try to sell her collection of celebrity memorabilia in an auction “with reserve.” If Elin changes her mind, she can withdraw her collection:

Answer 11

only before the auctioneer announces that the items are sold.

Question 12

Shelby offers to make digital copies of Relay Company’s business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule, Relay’s acceptance by e-mail will be considered effective when:

Answer 12

sent

Question 13

Quik Fix-It, Inc., offers Pam a job as a plumber. No time for acceptance is specified in the offer. The offer will terminate:

Answer 13

after a reasonable period of time.

Question 14

Yvon asks Zac, “Do you want to buy one of my fishing rods?” This is:

Answer 14

not a valid offer because the terms are not definite.

Question 15

Mayfair Company offers to sell a certain mall to Galleria Stores, Inc., for a certain price if it accepts before 10 A.M. Monday. A contract is formed if Galleria’s acceptance is received:

Answer 15

before 10 A.M. Monday.

Question 16

Elmore offers to sell a Ford F-150 for $7,500 to Grace. Before Grace can respond, Elmore refers to the prices for similar Fords and says, “Forget it. I changed my mind.” Elmore’s offer was terminated by:

Answer 16

elmore

Question 17

Deb buys a song through eSongs, an online music vendor. Before completing the purchase and downloading the song, Deb must agree to a provision not to sell copies of the song. This provision is:

Answer 17

a click-on agreement.

Question 18

Nate tells Opal, “I might sell the skis that I bought last fall since I haven’t used them and the skiing season is almost over.” This is:

Answer 18

a statement of future intent.

Question 19

Kim sends an offer to Leo to cut down and remove a tree for $200. Kim says, “If you say nothing, I will consider you to have accepted my offer.” If Leo does not respond, he will be deemed to:

Answer 19

none of the choices.

Question 20

Jelly Jar Company includes in its online offers a provision that indicates any disputes arising under the contract must be resolved in Kansas. Lena, a resident of Maine, accepts Jelly Jar’s offer. If a dispute arises, a court will most likely rule that it must be resolved in:

Answer 20

kansas

Question 21

When Jeff’s car breaks down, he asks Kwik Tow, Inc., to tow it from its location to Loyal Repair Shop. There is no discussion of a price, and Jeff and Kwik do not sign any documents. After the tow, Kwik sends Jeff a bill. With respect to Jeff’s obligation to pay the bill, this is:

Answer 21

an implied-in-fact contract.

Question 22

Demi promises to buy a house from Caleb, who promises to vacate the property on June 1. If these promises are in writing, they are most likely:

Answer 22

enforceable.

Question 23

Jack promises to buy Kris’s computer for $400. Jack is:

Answer 23

a promisor.

Question 24

Avatar, Inc., and Bling Corporation sign a contract in which Avatar agrees to deliver t-shirts emblazoned with video game characters in exchange for Bling’s promise to pay. Avatar delivers. The contract is:

Answer 24

executory.

Question 25

Hubert mistakenly pays property taxes that should have been assessed against Jesse. Hubert can recover the amount from Jesse in quasi contract:

Answer 25

even if Jesse was not aware of the error.

Question 26

Expert Pavers, Inc., contracts with Fabricated Building Corporation to repave Fabricated’s parking lot for which Fabricated agrees to pay. The requirements of this, and any other, contract do not include:

Answer 26

practicality

Question 27

Opie offers to sell his guitar to Pinky for $100. Pinky agrees. They complete and sign a printed form that includes, near the blanks for their signatures, the word “seal.” This is:

Answer 27

a formal contract

Question 28

Employment Sources, Inc., enters into a contract with Fred. If Fred is a minor, this contract is most likely:

Answer 28

voidable.

Question 29

Flo tells Gregor that she will buy his textbook from last semester for $65. Gregor agrees. Flo and Gregor have:

Answer 29

an express contract.

Question 30

Clay offers to pay Dot $50 for a golf lesson for Eula. They agree to meet the day after tomorrow to exchange the cash for the lesson. These parties have:

Answer 30

a bilateral contract.

Question 31

Scott and Tiffany enter into an implied-in-fact contract. The parties’ conduct:

Answer 31

defines the contract’s terms

Question 32

Bobbie claims that Carl breached their contract. Carl responds that he never intended to enter into a contract with Bobbie. The intent to enter into a contract is determined with reference to

Answer 32

the objective theory of contracts.

Question 33

On Monday, Neil tells Outdoor Landscaping, Inc., that he will pay Outdoor $500 if a variety of tasks are completed by Friday. On Wednesday, when Outdoor is more than half done with the work, Neil says that he has changed his mind. These parties had:

Answer 33

a unilateral contract as soon as Outdoor began to perform.

Question 34

On behalf of the rock group Uno, their manager Thalia agrees to a performance in Seaside Amphitheatre on July 4. Rex, acting for Seaside Productions, sends a written copy of the agreement to Thalia to be signed. Typically, businesspersons put their contracts in writing to:

Answer 34

ensure proof of the contracts’ existence.

Question 35

Vernon claims that his contract with Ulani is voidable. If their contract is avoided:

Answer 35

both parties are released from it.

Question 36

Digital Architecture, Inc., enters into a contract to design robotic software for Chassis Assembly Corporation. The freedom to enter into contracts is:

Answer 36

a fundamental public policy of the United States.

Question 37

Greco promises to buy illegal copies of CDs and DVDs from Fava, who promises to deliver on April 15. These promises are most likely:

Answer 37

void

Question 38

Mona asserts that a contract she entered into with Nate is unenforceable. Defenses to the enforcement of a contract include:

Answer 38

the lack of a party’s genuine assent

Question 39

InTown Delivery Service promises to deliver a certain couch to Kurt, who promises to pay for the service. If InTown does not perform, the firm may be required to

Answer 39

pay damages

Question 40

Phil enters into a written contract with Vacation Resorts, Inc., to work as a chef. Under the plain meaning rule, the meaning of this contract must be determined by reference to:

Answer 40

the face of the writing

Question 41

Genovese Contracting, Inc., agrees to build a warehouse for Hawthorne Distributors. Genovese runs into the types of difficulties that contrac­tors ordinarily confront, and Hawthorne agrees to pay extra compensation to over­come them. Regarding the agreement to pay more, a court would likely:

Answer 41

not enforce it

Question 42

Boz runs an illegal gambling business and pays Colin, a police officer, not to interfere. The payments are discovered. Boz and Colin are sent to prison. With respect to the amount of the payments, Boz can recover:

Answer 42

none of it.

Question 43

Dex and Carmen are in an auto accident. Dex offers Carmen $2,000 if she promises not to pursue her potential legal claim against Dex. Carmen agrees. Later, Carmen discovers that it will cost $1,500 to repair her car and $4,000 to cover the medical expenses for a latent injury. In Carmen’s suit against Dex to recover her repair and medical expenses, Carmen will most likely recover:

Answer 43

nothing

Question 44

Eli obtains a consumer loan from First State Bank at an interest rate that exceeds the state’s maximum. First State has:

Answer 44

violated the usury laws.

Question 45

Baked Goods Company agrees to supply Comida Café with all the corn chips that it requires for a year. A sudden, unusual demand for ethanol results in a shortage of corn, and the price rises sharply. Baked Goods asks Comida to pay a higher price for the chips. This request is:

Answer 45

valid due to the unforeseen difficulty of the sudden price increase.

Question 46

Boyd is a minor. As a minor, Boyd has the capacity to enter into:

Answer 46

a valid contract.

Question 47

Intoxicated but fully aware of the consequences, Uri agrees to a two-year cell-phone service contract with Wander Talk, Inc., at more than the average market price. This contract is:

Answer 47

enforceable

Question 48

A contract between Donald and Chloe to lease commercial property contains an exculpatory clause. These clauses are:

Answer 48

generally unenforceable.

Question 49

Orin, who is sane enters into a contract with Natalie. Later, Orin is adjudged mentally incompetent by a court and Moseby is appointed Orin’s guardian. Lila, Orin’s daughter, attempts to void Orin’s contract with Natalie on the ground of Orin’s incompetency. The contract is

Answer 49

enforceable if Orin does not attempt to disaffirm it.

Question 50

Windshield Repair Shop (WRS) promises to pay Vincent $1,000 a week to work for WRS. Vincent accepts and quits his job with Ultra Glass. WRS fails to provide a job for Vincent. Vincent has a cause of action based on:

Answer 50

promissory estoppel.

Question 51

Elmo, a minor, misrepresents his age to be twenty-one and contracts to buy a car from Fine New Autos. Ordinarily, Elmo can disaffirm the contract:

Answer 51

under any circumstances.

Question 52

Neil represents himself as a contractor in Ohio, but he is not licensed in that state. A contract between Pam and Neil by which Neil agrees to build a warehouse for Pam in Ohio is:

Answer 52

not enforceable.

Question 53

Dave’s Hobby Town and Eva’s Yarn Shoppe are adjacent stores with adjoining parking lots. Dave offers Eva a discount on purchases from Dave’s store if Eva will not tow the cars of Dave’s customers who park in Eva’s lot. Dave’s discount is legally sufficient consideration:

Answer 53

because it is a promise of something of value.

Question 54

Cray returns a digital music player that he bought from Discount City, which refunds the price. Their exchange involves:

Answer 54

restitution.

Question 55

Ken relinquishes the right to his minor son Lee’s control, care, custody, and earnings. This act is:

Answer 55

an emancipation.

Question 56

Mica, a minor, signs a contract to pay Natural Health Club a monthly fee for twenty-four months to use its facilities. Six months later, after reaching the age of majority, Mica continues to use the club. This act is:

Answer 56

a ratification.

Question 57

Webline Retail Sales, Inc., promises its salaried employees a bonus at the end of the year if management thinks it is warranted. This promise is:

Answer 57

unenforceable because it is not supported by consideration.

Question 58

On Tom’s eighteenth birthday, he decides that he no longer wants to keep a car he bought from U-Pick Autos, when he was seventeen. His right to disaffirm the deal will depend on:

Answer 58

whether Tom acts within a reasonable period of time.

Question 59

Jon agrees to sell his K9 Sports Equipment store to Lacy. As part of the sale, Jon promises never to open a similar, competing store anywhere. Jon’s promise is most likely:

Answer 59

invalid because of the unreasonable terms of area and time.

Question 60

Quality Steel Corporation files a suit against Rite Tool Company, claiming that the consideration for their contract is inadequate. The court will most likely not examine the adequacy of the consideration if:

Answer 60

something of value passed between the parties