business law final – Flashcards
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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: a do nothing. b make another promise. c pay damages. d perform a different service.
answer
c pay damages.
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Jack promises to buy Kris's computer for $400. Jack is: a an executor. b an offeree. c a promisee. d a promisor.
answer
d a promisor.
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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: a the conscious theory of contracts. b the objective theory of contracts. c the personal theory of contracts. d the subjective theory of contracts.
answer
b the objective theory of contracts.
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Digital Architecture, Inc., enters into a contract to design robotic software for Chassis Assembly Corporation. The freedom to enter into contracts is: a a fundamental public policy of the United States. b an ambiguous business goal that is irrelevant in terms of the law. c a philosophical concept that underlies international law. d a principle that describes contracting parties' intent.
answer
a a fundamental public policy of the United States.
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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: a consideration. b capacity. c legality. d practicality.
answer
d practicality.
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Mona asserts that a contract she entered into with Nate is unenforceable. Defenses to the enforcement of a contract include: a a desire not to perform. b adverse economic consequences. c results that do not match expectations. d the lack of a party's genuine assent.
answer
d the lack of a party's genuine assent.
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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: a a bilateral contract. b a trilateral contract. c a unilateral contract. d no contract.
answer
a a bilateral contract.
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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: a an expired contract when Neil said that he had changed his mind. b a quasi contract when Neil said that he would pay for certain work. c a unilateral contract as soon as Outdoor began to perform. d no contract.
answer
c a unilateral contract as soon as Outdoor began to perform.
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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: a a formal contract. b an informal contract. c a social contract. d no contract.
answer
a a formal contract.
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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: a ensure proof of the contracts' existence. b create substance from form. c obtain a check or other negotiable instrument. d practice their "letters of credit."
answer
a ensure proof of the contracts' existence.
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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: a an express contract. b an implied-in-fact contract. c an implied-in-law contract. d no contract.
answer
b an implied-in-fact contract.
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Flo tells Gregor that she will buy his textbook from last semester for $65. Gregor agrees. Flo and Gregor have: a an executed contract. b an express contract. c an implied-in-fact contract. d a quasi contract.
answer
b an express contract.
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Scott and Tiffany enter into an implied-in-fact contract. The parties' conduct: a defines the contract's terms. b finds the contract's facts. c terminates any unintended consequences. d undercuts any terms based on the facts.
answer
a defines the contract's terms.
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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: a voidable. b executed. c executive. d executory.
answer
d executory.
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Vernon claims that his contract with Ulani is voidable. If their contract is avoided: a both parties are released from it. b both parties must fully perform their obligations under it. c a wholly different contract is agreed to. d a wholly different contract is imposed "as if" the parties had agreed.
answer
a both parties are released from it.
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Employment Sources, Inc., enters into a contract with Fred. If Fred is a mi-nor, this contract is most likely: a enforceable. b unenforceable. c void. d voidable.
answer
d voidable.
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Demi promises to buy a house from Caleb, who promises to vacate the prop-erty on June 1. If these promises are in writing, they are most likely: a enforceable. b unenforceable. c void. d voidable.
answer
a enforceable.
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Greco promises to buy illegal copies of CDs and DVDs from Fava, who promises to deliver on April 15. These promises are most likely: a enforceable. b valid. c void. d voidable.
answer
c void.
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Hubert mistakenly pays property taxes that should have been assessed against Jesse. Hubert can recover the amount from Jesse in quasi contract: a even if Jesse was not aware of the error. b only if Jesse tried to conceal the error. c only if Jesse was aware of the error. d under no circumstances.
answer
a even if Jesse was not aware of the error.
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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 deter-mined by reference to: a any available evidence. b any relevant extrinsic evidence. c the face of the writing. d the later testimony of the parties.
answer
c the face of the writing.
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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: a an acceptance of an offer. b an invitation to accept an offer. c an offer. d a statement of future intent.
answer
d a statement of future intent.
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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 deĀ¬tails. Wanda responds with a letter of "acceptance." Wanda and Vito have: a a contract. b no contract, because Vito sent the letter to more than one party. c no contract, because Vito was only inviting bids. d no contract, because the letter was an invitation to negotiate.
answer
b no contract, because Vito sent the letter to more than one party.
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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: a only before the auctioneer announces that the items are sold. b only before the auctioneer delivers the items to the buyers. c under no circumstances. d within thirty days after the auction.
answer
a only before the auctioneer announces that the items are sold.
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Yvon asks Zac, "Do you want to buy one of my fishing rods?" This is: a a valid offer. b not a valid offer because the terms are not definite. c not a valid offer because Yvon did not state an intent. d not a valid offer because Zack did not respond.
answer
b not a valid offer because the terms are not definite.
question
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: a a full-page ad in the local paper and a thirty-second commercial on the local station. b a notice in the "Legal Announcements" section of the paper. c a notice to the news departments of the local stations. d any, or none, of the choices.
answer
a a full-page ad in the local paper and a thirty-second commercial on the local station.
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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: a creates an illegal contract by adding a clause to BPI's offer. b makes the offer irrevocable for three days if BPI accepts. c negates BPI's offer by changing the price term. d voids BPI's offer by extending the time term.
answer
b makes the offer irrevocable for three days if BPI accepts.
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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: a Elmore. b Ford. c Grace. d no oneāElmore's offer is still open.
answer
a Elmore.
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Jane offers to sell Kyle three desks for his Lights & Lamps Company administrative office. Kyle sends a rejecĀ¬tion first, then changes his mind and sends an acceptance. Whether they have a contract is determined by: a Kyle's rejection. b Kyle's subjective intent. c whatever Jane decides. d whether Kyle's rejection or acceptance is received first.
answer
d whether Kyle's rejection or acceptance is received first.
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Quik Fix-It, Inc., offers Pam a job as a plumber. No time for acceptance is specified in the offer. The offer will terminate: a after a reasonable period of time. b after a typical work week (five business days). c after a usual month (thirty calendar days). d never.
answer
a after a reasonable period of time.
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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: a Grant. b Honda c Ivy. d no oneāGrant's offer is still open.
answer
c Ivy.
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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: a a forklift for Value if Wally's insurance covers the loss. b a forklift for Value if it still wants one. c nothing for Value because that would extend the time of the offer. d nothing for Value because the theft termiĀ¬nated the offer.
answer
d nothing for Value because the theft terminated the offer.
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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: a accept the offer. b make a counteroffer. c reject the offer. d none of the choices.
answer
d none of the choices.
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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: a received. b sent. c followed up by a confirmation letter sent by regular mail. d composed on a Relay computer.
answer
b sent.
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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: a before 10 A.M. Monday. b before midnight Monday. c before twenty-four hours of 10 A.M. Monday. d within a reasonable time of 10 A.M. Monday.
answer
a before 10 A.M. Monday.
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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: a a fax, a letter, or a phone call to TF within two weeks. b a fax sent to TF as soon as the offer is received. c a letter mailed to TF within two days. d a phone call to TF within five business days.
answer
b a fax sent to TF as soon as the offer is received.
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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: a a browse-wrap term. b a click-on agreement. c a shrink-wrap agreement. d none of the choices.
answer
b a click-on agreement.
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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: a the contract was entered into over the Internet. b the contract was formed between a student and a university. c the contract will be performed online. d the subject matter of the contract is "Internet Law."
answer
a the contract was entered into over the Internet.
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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: a Kansas. b Kansas or Maine. c Maine. d the location selected by the first party to file a suit.
answer
a Kansas.
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An offer must be communicated to the offeree to be effective. a True b False
answer
a True
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An acceptance that materially changes a term in the offer will still be considered an acceptance. a True b False
answer
b False
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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: a because it is a promise of something of value. b only if Dave adds a cash rebate. c only if Eva uses it. d under no circumstances.
answer
a because it is a promise of something of value.
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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. Eva's forbearance from towing is legally sufficient consideration: a because it is a promise of something of value. b only if Dave's customers park in Eva's lot. c only if Eva's customers cannot park in her lot because it is full. d under no circumstances.
answer
a because it is a promise of something of value.
question
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: a it is obvious that the consideration is adequate. b Rite Tool asserts that there is adequate consideration. c something of value passed between the parties. d the consideration is worth more than $100.
answer
c something of value passed between the parties.
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Baked Goods Company agrees to supply Comida CafĆ© with all the corn chips that it reĀ¬quires for a year. A sudden 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: a invalid as an attempt at extortion or the so-called holdup game. b invalid under the preexisting duty rule. c valid as a risk ordinarily assumed in business. d valid due to the unforeseen difficulty of the sudden price increase.
answer
d valid due to the unforeseen difficulty of the sudden price increase
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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: a enforceable. b unenforceable because it is not supported by consideration. c unenforceable because the dollar amount is missing. d unenforceable because the employees are paid salaries.
answer
b unenforceable because it is not supported by consideration.
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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: a half the amount to pay the costs over what Dex already paid Carmen. b nothing. c the estimated amount to pay those costs and any other liability. d the exact amount to pay those costs and no more.
answer
b nothing.
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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: a an illusory promise. b a release. c past consideration. d promissory estoppel.
answer
d promissory estoppel.
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Ken relinquishes the right to his minor son Lee's control, care, custody, and earnings. This act is: a a disaffirmance. b an emancipation. c a ratification. d restitution.
answer
b an emancipation.
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Boyd is a minor. As a minor, Boyd has the capacity to enter into: a an invalid contract. b an unavoidable contract. c a valid contract. d no contract.
answer
c a valid contract.
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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: a the car's condition when Tom bought it. b the car's current stereo system. c whether Tom acts within a reasonable period of time. d whether U-Pick has the right to disaffirm.
answer
c whether Tom acts within a reasonable period of time.
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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: a only if he can prove that Fine New Autos did not know his true age. b only if he can prove that Fine New Autos knew his true age. c under any circumstances. d under no circumstances.
answer
c under any circumstances.
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Cray returns a digital music player that he bought from Discount City, which refunds the price. Their exchange involves: A an emancipation. b a ratification. c restitution. d severability.
answer
c restitution.
question
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: a a disaffirmance. b an emancipation. c a ratification. d a restitution.
answer
c a ratification.
question
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: a enforceable. b not enforceable because contracting parties can change their minds. c not enforceable because the contract clearly favors Wander Talk. d not enforceable because Uri was intoxicated when he agreed to it.
answer
a enforceable.
question
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 a enforceable if Orin does not attempt to disaffirm it. b enforceable if Natalie is also incompetent. c enforceable if Moseby knew of the contract when he was appointed. d void.
answer
a enforceable if Orin does not attempt to disaffirm it.
question
Eli obtains a consumer loan from First State Bank at an interest rate that exceeds the state's maximum. First State has: a calculated the optimum rate that the market will bear. b engaged in a restraint of trade. c underestimated the risk of the loan's nonpayment. d violated the usury laws.
answer
d violated the usury laws.
question
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: a enforceable only if Pam does not object after learning of Neil's status. b enforceable only if Pam knows that Neil is unlicensed. c enforceable only if the outcome is successful. d not enforceable.
answer
d not enforceable.
question
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: a invalid because it is part of a sale of an ongoing business. b invalid because of the unreasonable terms of area and time. c valid because it is part of a sale of an ongoing business. d valid because Jon and Lacy apparently have the capacity to contract.
answer
b invalid because of the unreasonable terms of area and time.
question
A contract between Donald and Chloe to lease commercial property contains an exculpatory clause. These clauses are: a enforceable as a matter of public policy. b enforceable if either party is in a business important to the public. c enforceable if an event occurs to which the clause applies. d generally unenforceable.
answer
d generally unenforceable.
question
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: a all of it. b none of it. c only as much as Colin has not spent. d only as much as Colin has spent.
answer
b none of it.
