Blaw ch. 10, 11, 12 hypotheticals
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Elliot enters into a contract to purchase JD's house, and then changes her mind. JD sues her for breach of contract. The lawsuit for a breach of contract will be governed by a. the Uniform Commercial Code b. common law of contracts. c. state statute. d. agency regulations.
answer
b. common law of contracts.
question
Troy, who is 18, offers to sell Jenna, who is also 18, his car for $5,000. Jenna accepts Troy's offer, but only agrees to pay $4,500 for the car. Which of the following contract elements has not been met? a. Offer. b. Contractual Capacity. c. Legality. d. Acceptance.
answer
d. Acceptance.
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Jackson offers to pay Casey $50 for his used business law textbook. Casey agrees to sell it for that amount. They agree to meet one week later to exchange the money for the book. Casey and Jackson have formed a. no contract. b. a formal contract. c. a unilateral contract. d. a bilateral contract.
answer
d. a bilateral contract.
question
Marcy tells Jessica that she will buy Jessica a new dress if she reads a book by Friday night. Jessica begins reading and has only two chapters left to finish when Marcy tells Jessica that she has changed her mind and will not buy the dress. Under the modern approach to contracts, Marcy and Jessica a. have no contract until Jessica finishes reading. b. have not formed a contract, and Marcy owes Jessica nothing. c. formed a bilateral contract as soon as Jessica began reading. d. formed a unilateral contract as soon as Jessica began reading.
answer
c. formed a bilateral contract as soon as Jessica began reading.
question
Carmen owns a 2009 Toyota Camry that has been driven 24,000 miles and, to his knowledge, has no mechanical problems. He offers to sell the car to his friend Jamie for $12,000. Jamie accepts Carmen's offer. Jamie and Carmen have a. an express contract. b. an executed contract. c. an implied contract. d. a quasi-contract.
answer
a. an express contract.
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Carol's car was hit while it was parked. Carol calls A-1 Towing, tells the dispatcher the car needs to be towed, and gives her location. Carol never mentions a price and leaves before the tow truck arrives, so she does not talk with the driver or sign any documents. Carol a. owes the company for towing her car under an implied contract. b. owes the company for towing her car under an express contract. c. does not owe the company for towing her car, because she did not have a chance to reject its services. d. does not owe the company for towing her car, because she did not know that she would have to pay.
answer
a. owes the company for towing her car under an implied contract.
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Patricia drives to her favorite gas station and tells the attendant to fill her tank. The attendant asks Patricia what grade she wants, and she tells him, "regular." The attendant fills the tank. At this point, the contract between the station and Patricia is a. unenforceable. b. executory. c. executed. d. void.
answer
b. executory.
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Kelly tells Matthew that she will sell him one of her motorcycles at some time in the future. Matthew eagerly accepts. Do they have a valid contract? a. Probably, because the parties knew what they were discussing. b. Definitely not, because the offeree did not accept the offer. c. Probably, because Kelly failed to communicate the offer to the offeree. d. Probably not, because the terms are not definite.
answer
d. Probably not, because the terms are not definite.
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Edward offers to sell Penny his home gym equipment for $1,000. Penny tells Edward, "I like the gym equipment, but I'll only pay $750." Penny's statement constitutes a: a. rejection. b. counteroffer. c. contingent offer. d. revocation.
answer
b. counteroffer.
question
KJ Games, in Colorado, designs computer games that it markets and sells to customers via the Internet. A click-on agreement accompanies every download; no game can be installed on a buyer's computer if the buyer does not click on the words "I agree" when prompted. The click-on agreement clearly states in capital letters that all disputes will be settled in Colorado's state courts. Buyers of KJ's games are most likely a. required to file any lawsuits in Colorado. b. not required to file their lawsuits in Colorado. c. not required to accept this term of the contract. d. required to arbitrate any disputes in Colorado.
answer
a. required to file any lawsuits in Colorado.
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Kristin contracts with Jacob to buy a car through an online auction service. All of their negotiations and transactions are conducted electronically. None of their communications ever mention the Uniform Electronic Transactions Act (UETA), which was adopted by their state in its entirety in 2001. Their contract is a. automatically covered by the UETA. b. covered by the UETA only if the transaction occurred after 2004. c. not covered by the UETA. d. covered by the UETA only if their contract involves computer information.
answer
a. automatically covered by the UETA.
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Wes agrees to install a new hard drive and modem in Mary's computer in exchange for four of her used textbooks. After he installs the hard drive, Wes says he won't install the modem unless Mary gives him two more books. What legal position are the parties in now? a. Mary can sue for breach of contract, because Wes had a preexisting duty to do all of the work. b. Wes will only get one more book, because two is too many more to be fair. c. Mary must give Wes the additional books. d. Wes can receive the extra books in exchange for doing more work, as he has given good and fair consideration in exchange.
answer
a. Mary can sue for breach of contract, because Wes had a preexisting duty to do all of the work.
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Heather is sixteen but looks much older. She goes into a jewelry store and buys a diamond bracelet with the money she has been saving for college. If Heather realizes a year later that it was unwise to spend the money on the bracelet, she a. can return the bracelet, but she will only get 50 percent of what she paid for it. b. can return the bracelet and get her money back. c. cannot return the bracelet, because she has kept it too long. d. can disaffirm this contract only if she has turned eighteen.
answer
b. can return the bracelet and get her money back.
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Paul goes to a bar, has seven shots of whiskey, and then goes to an electronics store and buys a $2,500 stereo system. If he later wants to avoid the contract based on his intoxication when he bought it, he will need to prove that a. a reasonable person would have known that he was intoxicated. b. the store clerk knew he was intoxicated. c. his capacity to act would be classified as "legally unstable." d. he lacked the mental capacity to enter into the contract.
answer
d. he lacked the mental capacity to enter into the contract.
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Keisha contracts with a broker to invest all of her savings. The year goes badly, and she loses almost all the money. She is too ill to return to work and will be penniless if she cannot avoid the contract. Which of the following applies? a. She has no legal recourse. b. She can appeal to her governor for clemency. c. She can avoid the contract based on the general gambling rule. d. She can avoid the contract because stock market transactions are against public policy.
answer
a. She has no legal recourse.
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Beaux is discussing with Brad the purpose of the statute of frauds enacted in all states, and tells him the purpose of the law is to a. prevent fraud relating to certain contracts. b. prevent enforcement of certain contracts that are not in writing. c. prevent the enforcement of contracts that are not signed by all parties. d. prevent a party to a contract from testifying at trial.
answer
b. prevent enforcement of certain contracts that are not in writing.
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Sierra offers to sell Alyssa a Scottish terrier puppy for $800. Alyssa and Sierra do not discuss the dog's ancestry, but Alyssa believes that the dog came from champion lines and agrees to the price. Alyssa later discovers that the puppy is worth only $200. Can Alyssa rescind the contract based on her mistake? a. Yes, because Alyssa had a duty to investigate, which she failed to perform. b. Probably not, because Alyssa made a mistake about the dog's value, not a mistake about a material fact. c. Probably so, because Alyssa made a mistake about a material fact. d. Yes, because the dog was clearly not worth $800.
answer
b. Probably not, because Alyssa made a mistake about the dog's value, not a mistake about a material fact.
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Brian wants to buy a mare that he can breed to help develop a horse operation. Larson offers to sell Brian a horse that Larson believes is healthy and should make a good broodmare when a little older. After two years, the horse still has not foaled. The veterinarian tells Brian that the horse is incapable of breeding. If Brian sues to rescind the contract with Larson, it is a. likely that a court will allow the rescission based on a unilateral mistake. b. unlikely that a court will allow rescission based on a mistake of fact. c. likely that a court will allow the rescission based on a mistake of fact. d. unlikely that a court will allow rescission, because Brian made a mistake about market value.
answer
c. likely that a court will allow the rescission based on a mistake of fact.
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AJ agrees to buy Harry's pickup truck so he can pull his trailer. Both AJ and Harry believe that the truck is big enough to do the job. After they complete the deal, AJ finds that the truck is not strong enough to handle the trailer. The contract between AJ and Harry can be rescinded because of a. a mutual mistake. b. a unilateral mistake. c. a beveled mistake. d. an allowable mistake.
answer
a. a mutual mistake.
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Sophie buys a tropical bird from Henry's bird store. Henry says, "It is extremely rare." Sophie asks if the bird is on the endangered species list. Henry knows it is on the list, but he tells her it is not. Government officials later tell Sophie that she purchased a bird that individuals may not own, the bird is confiscated, and she is fined for possessing it. To recover the price of the bird and the cost of fines, Sophie can sue Henry for a. fraudulent misrepresentation. b. undue influence. c. mistake, which allows the contract to be rescinded. d. negligence.
answer
a. fraudulent misrepresentation.
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Samantha, a famous artist, has a contract with Alec to paint his portrait for $6,000. Samantha is very busy and want to delegate her duty to do the painting to Patty, her top student and a very talented artist. If Alec objects, a court likely will a. not honor the delegation because, as a general rule, delegations are not allowed. b. honor the delegation because, as a general rule, delegations are allowed. c. not honor the delegation because the contract is based on personal skill. d. honor the delegation only if the delegation was in writing.
answer
c. not honor the delegation because the contract is based on personal skill.
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Antonio owns property on which a gasoline station once stood. Josh agrees to buy the land so that he can build an office on it. They include language in the contract making the purchase contingent on a determination that there are no environmental problems with the property. The contingency represents a. a condition precedent. b. a concurrent condition. c. an implied condition. d. a condition subsequent.
answer
a. a condition precedent.
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Rick agrees to buy 20 acres of land from Tina. Three weeks before the deal is to close, Rick calls Tina and says, "The deal is off!" In this situation, Rick's actions constitute a. substantial performance of the contract. b. anticipatory repudiation of the contract. c. a reformation of the contract. d. a discharge of the contract by novation.
answer
b. anticipatory repudiation of the contract.
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Johanna agrees to purchase Jessie's land so that she can build a golf course. They write a contract, and Johanna transfers the deed to Jessie. Jessie pays Johanna the entire purchase price. Johanna and Jessie have discharged their contract by a. performance. b. breach. c. lapse of time. d. concurrence.
answer
a. performance.
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Jim contracted with United Technologies to install 5,000 feet of Rocketfish Cat-5e network cable in his new office building. United installed 5,000 feet of Dynex Cat-5e network cable instead. When Jim sued for breach of contract, and a court found that United's actions constituted a. substantial performance. b. incomplete performance. c. material breach. d. complete performance.
answer
a. substantial performance.
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Nico and Oscar form a contract under which Oscar is to perform gardening services for Nico for one year. For six months, Oscar performs the services, and Nico pays him. Nico's mother, Madison, becomes ill and is unable to care for her garden. The three agree that Oscar will no longer care for Nico's garden but instead will care for Madison's garden for the remainder of the year. The new contract a. is not valid. b. is a novation. c. has been substantially performed. d. is a reformation.
answer
b. is a novation.
question
If a person who has signed a contract to provide a service dies before the service can be performed, the a. estate (or successor) of the service provider may sue for the profits that would have been earned had the contract been fulfilled. b. buyer is out of luck, because the contract is discharged by objective impossibility. c. buyer can sue the estate of the deceased to recover the cost of obtaining a replacement or for other particular costs incurred. d. estate (or successor) of the service provider must make a good faith effort to provide a timely replacement.
answer
b. buyer is out of luck, because the contract is discharged by objective impossibility.
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David has a contact with Leland to build his house at a fixed price, but an unexpected hurricane causes a lumber shortage throughout the U.S. and Leland is unable to build the house. A court may excuse Leland from performing the contract based on the doctrine of a. repudiation. b. the statute of limitations. c. a novation. d. commercial impracticability.
answer
d. commercial impracticability.
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Marc agrees to sell Diana 500 copies of a book for $3.50 per book. Marc breaches the contract by not delivering the books. At the time of the breach, the books are available from the publisher for $4.50 each. Diana's damages are a. $500 b. $1,750 c. $2,250 d. $0
answer
a. $500
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Allison contracts with Jackson to have him remodel the kitchen in her home. Allison changes her mind and breaches the contract before Jackson can begin work. As a remedy for the breach, Jackson can seek a. the contract price plus interest. b. the contract price. c. expected profits from the contract. d. nothing, because she breached the contract before Jackson began work and he suffered no loss.
answer
c. expected profits from the contract.
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Lori contracts to buy coffee beans for her store from Mike. The contract price is $7.50 per pound of Costa Rican coffee. Mike breaches the contract and delivers no coffee. Lori's damages will likely be a. the difference between the contract price of coffee and what Lori will have to pay to secure alternative coffee. b. the amount of damages she seeks. c. the amount Mike can afford to pay. d. the compensation paid by Mike to the coffee grower who was supposed to supply the beans to Mike.
answer
a. the difference between the contract price of coffee and what Lori will have to pay to secure alternative coffee.
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Velma contracts with Gordon, who agrees to build a stone retaining wall and French drain on her property. The wall and drain are necessary to prevent erosion of her land, which is falling into the creek on her property at a rapid rate. If Gordon breaches the contract by failing to get to work, Velma is under a legal obligation to a. wait until Gordon is prepared to build the wall and drain. b. mitigate her damages. c. do nothing, because she is the innocent party and thus has no legal duties. d. absorb all of the costs associated with the property erosion caused by Gordon's breach.
answer
b. mitigate her damages.
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Brandon contracts with Starcross to buy several of Starcross's dairy cows. Starcross delivers the cows, but Brandon doesn't pay for them. Starcross may be able to have his cows returned if he seeks the remedy of a. novation. b. reformation. c. specific performance. d. restitution.
answer
d. restitution.
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Ronda contracts with Darren to buy two horses. They agree that she will pay $2,000 for each horse. When they draw up the contract, the sales price is inadvertently changed to read "$40,000" rather than "$4,000." They can seek the remedy of a. novation. b. restitution. c. recovery based on quasi-contract. d. reformation.
answer
d. reformation.
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Kevin buys a new Volkswagen and signs a contract with Volkswagen saying that he will never sue the company for any personal injuries he may receive as a result of a faulty car. In exchange, Volkswagen reduces the price of the automobile by $6,500. This type of contract provision is a. a dormant commerce clause. b. a revisionary clause. c. an exculpatory clause. d. a valid liquidated damages clause.
answer
c. an exculpatory clause.
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Jill buys a refrigerator and pays the company to have it installed. Her contract is governed by a. Article 2A of the UCC b. Common law c. Article 2 of the UCC d. Article 2B of the UCC
answer
c. Article 2 of the UCC
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Janis owns an operating copper mine. She regular sells the cooper from her mine to Travis, the raw materials of his factory. Their sales contracts are covered by: a. Article 3 of the UCC b. Article 2A of the UCC c. The common law, because they involve real property d. Article 2 of the UCC
answer
d. Article 2 of the UCC
question
Alyssa wants to purchase a large tent to use in her catering business, but she doesn't have the cash necessary to buy the tent. She convinces the owner of Ajax Supplies, an outdoor equipment store, to buy the tent from the tent's manufacturer and then lease it to her. They have created a a. Finance lease b. Trade usage lease c. Utility lease d. Consumer lease
answer
a. Finance lease
question
Collins offers to sell to Phillip an antique chest of drawers worth more than $2,500. Philip agrees to buy the chest an signs a contract for the purchase. The price of the chest, however is left out of the contract. Collins and Philip have: a. A valid contract s long as the court can determining a reasonable price at the time for delivery b. A valid contract only is Collins refuses to name a price c. No contract, because parties cannot leave the price term out of a valid contract under the Uniform Commercial Code (UCC) d. A valid contract only if Phillip is able to produce evidence that Collins defrauded him
answer
a. A valid contract s long as the court can determining a reasonable price at the time for delivery
question
Oscar owns a jewelry store. Maura agrees to buy a watch for $3,150 that Oscar has ordered from Germany. Oscar and Maura fail to specify where delivery will take place. Under the UCC: a. The open delivery term invalidates the contract b. Oscar must deliver the watch to Maura's home c. Maura must take delivery of the watch at Oscar's store d. Oscar must deliver the watch to his own home, where Maura will pick it up
answer
c. Maura must take delivery of the watch at Oscar's store
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Gabby, a physician assistant who is planning to move, offers to sell her sofa to her friend Trent for $750. Trent says "I'll take it, and I would like you to throw in the coffee table along with it". Under the Uniform Commercial Code (UCC), Gabby and Trent have: a. No contract, because of the mirror image rule b. A contract for the sofa and the coffee table c. No contract because Gabby did not accept the counteroffer d. A contract for the sofa only
answer
d. A contract for the sofa only
question
Thornton, who makes commercial signs, agrees over the telephone to make a sign for Mason's business for $1,000. the sign will read "Mason's Mighty Muffin Shop". After Thornton makes the sign Mason decides that he doesn't want it. The contract is: a. Invalid, because the contract was oral b. Invalid, because Thornton is a merchant and the Statute of Frauds applies c. Enforceable, even through the contract was oral d. Unconscionable
answer
c. Enforceable, even through the contract was oral
question
Smith agrees to buy the lawnmower that Kris advertised in the newspaper. Kris is not a merchant but a private party. Smith and Kris say nothing about the delivery in their contract. Under the UCC, delivery will take place at a. Smith's home b. Smith's place of business c. The local chamber of commerce d. Kris's home
answer
d. Kris's home
question
Harvey buys a used jet ski from Smith's Water Sports. Harvey takes the jet ski to the river and discovers that it doesn't work. He immediately notifies the seller of the problem. Smith's can a. Reclaim the jet ski b. Give Harvey an assurance in writing that the jet ski was working when he sold it c. Cover d. Cure the defect
answer
d. Cure the defect
question
Vanessa visits Herman's rare plant store, selects 12 bonsai trees, and agrees to buy them. While Herman is in the process of packing the trees, a violent thunderstorm arises. Lightening strikes the greenhouse and destroys the bonsai trees. With respect to the contract a. Herman and Vanessa must share the loss, because Vanessa has already agreed to make the purchase b. Herman and Vanessa are excused from performance c. Herman must find another nursery that has 12 bonsai trees for Vanessa to purchase d. Herman must replace the twelve lost bonsai trees that Vanessa agreed to purchase with twelve new trees
answer
b. Herman and Vanessa are excused from performance
question
Sarah asks George to deliver size rose bushes from his nursery to her house. George brings the bushes and Sarah places them around her property. For several weeks, she admires the bushes, but she does not pay for them. Sarah has a. Made a partial rejection of the rose bushes, because she hasn't paid b. Exceeded the statute of limitations c. Made a full rejection of the rose bushes, because she hasn't paid d. Accepted the rose bushes; she had a reasonable time to inspect the plants and has failed to reject them
answer
d. Accepted the rose bushes; she had a reasonable time to inspect the plants and has failed to reject them
question
Anna contracts to buy 10,000 CDs from Louis. Louis ships the CDs to Anna. The CDs are exactly as stipulated in the contract, and Anna accepts them. If Anna fails to pay Louis for the CDs, Louis can a. File a lawsuit to recover the purchase price b. Cover the sale c. Cure the tender d. Reject the goods
answer
a. File a lawsuit to recover the purchase price
question
Holly comes into Matthew's bicycle ship to learn about the Easy Ride bicycle she saw in his newspaper ad. Matthew shows her the floor sample of the bicycle and says that it is designed to shift and brake more easily than her current model does. She decides to purchase one. Mathew gets a box from the back of the shop and sells it to her, stating that it is the bicycle Holly wants. Matthew does NOT create an express warranty with his statement that the bicycle inside the box a. Conforms to his description of the Easy Ride b. Conforms to the floor sample he showed to Holly c. Was purchased from a disreputable manufacturer d. Conforms to his promise about the bicycle's shifting and braking ability
answer
c. Was purchased from a disreputable manufacturer
question
Joey sells a clock from his store through an online auction website. He has never met the buyer, Rod, and had no communication with him before the sale agreement. When he sends the clock, he does not disclaim any warranties. The sale most likely automatically caries with it the implied warranty of: a. Merchantability b. Fitness for a particular purpose c. Inspection d. Opinion
answer
a. Merchantability
question
Carl sues Goldman Manufacturing, alleging he suffered injuries as a result of a design defect in Goldman's food processor. To prevail in this lawsuit, Carl must show that Goldman a. Failed to adequately warn him of the danger of harm b. Met his consumer expectation and that his injury was unintended c. Met the relevant stature of limitations or repose d. Had a reasonable alternative design available, which it failed to use
answer
d. Had a reasonable alternative design available, which it failed to use
question
Fred sued Document Security Company, alleging he had suffered injuries to his hands as a result of attempting to fix a jam in one of Document Security's paper shredders. Fred alleged the shredder was defective because it failed to contain warnings regarding the dangers to fingers and hands while attempting to fix jams. In order to succeed, Fred will have to show a. The injuries would not have occurred but for the absence of the warnings b. All risk of harm could have been reduced or avoided by the provision of reasonable instructions or warnings by the seller c. Foreseeable risks of farm could have been reduced or avoided by the provision of reasonable instructions or warnings by the seller d. Paper shredders are inherently dangerous products
answer
c. Foreseeable risks of farm could have been reduced or avoided by the provision of reasonable instructions or warnings by the seller
