Bus 340 – ch 7 quiz – Flashcards
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Rescission is the substitution of one party to a contract for a third party, who agrees to assume the contractual duties
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False
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A check, like other negotiable instruments, is a formal contract.
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True
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An expression of opinion¾"your customers will like this"¾is an offer.
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False
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An invitation to submit bids¾"how much would you charge to do this work?" ¾is an offer
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False
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Lively Toys Store and Movin' Products Company (MPC) enter into an e-contract under which MPC agrees to ship a case of electronic, remote-controlled bugs to Lively Toys, which agrees to pay on delivery. The Uniform Electronics Transactions Act (UETA)
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supports the enforcement of such contracts.
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Resolving whether a promise should be enforced is the essence of contract law.
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True
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Fabio, a user of GameCenter.com's Web site, can download gaming software for free if he first clicks on "I accept" after viewing certain terms. This is
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a contract that includes the terms.
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An offer may invite an acceptance to be worded in such specific terms that the contract is made definite.
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False
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An implied-in-fact contract is implied from the conduct of the parties.
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True
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Saf-T Storage, Inc. (SSI), offers to sell a warehouse to Richfield Investments. Richfield says that it will pay SSI $100 to hold the offer open for three business days. This
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makes the offer irrevocable for three days if SSI accepts.
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An electronic symbol, adopted by a person with the intent to sign an e-record, is an e-signature.
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True
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The doctrine of promissory estoppel requires a clear and definite promise
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True
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An effective offer requires reasonably certain terms.
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True
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A promise to do something that one has a prior legal duty to do is not consideration.
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True
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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. Refer to Fact Pattern 8-1. Dave's discount is legally sufficient consideration
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because it is a promise of something of value.
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GR8 Marketing Company and Hot Tunes, Inc., sign a document that states GR8 agrees to create a marketing campaign for Hot and Hot agrees to pay GR8 for the service. GR8 and Hot have
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an express contract.
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Magic Math Corporation makes business accounting software, which is packaged with a shrink-wrap agreement. National Distribution Company distributes the software to retailers, including an Office Stuff store, where Peg buys a package of it. The parties to the shrink-wrap agreement are
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Magic Math and Peg only.
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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
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A formal contract
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A bargained-for exchange is one of the elements of consideration.
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T
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Contract law shows what excuses our society accepts for breaking certain types of promises.
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T
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One of the requirements of a valid contract is a fair price.
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F
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An accord and satisfaction requires that the amount of a debt be certain.
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F
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Fact Pattern 8-3 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. Refer to Fact Pattern 8-3. In Carmen's suit against Dex to recover her repair and medical expenses, Carmen will most likely recover
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Nothing
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Normally, a court of law will not question the adequacy of consideration.
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T
