BUS ch 7 – Flashcard

question

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
question

Fact Pattern 8-2 Brad defends against a breach-of-contract suit by College Credit Corporation by claiming that their deal¾a student loan accruing interest at a certain rate and payable beginning on a certain date¾was unfair because the consideration for their contract was inadequate. Refer to Fact Pattern 8-2. A court is most likely to evaluate the adequacy of consideration if
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