Bus Law Chapter 9 cengage – Flashcards

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. common law of contracts. b. agency regulations. c. state statute. d. the Uniform Commercial Code

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. Legality. b. Contractual Capacity. c. Acceptance. d. Offer.

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. a bilateral contract. b. a unilateral contract. c. no contract. d. a formal contract.

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. formed a bilateral contract as soon as Jessica began reading. b. have not formed a contract, and Marcy owes Jessica nothing. c. have no contract until Jessica finishes reading. d. formed a unilateral contract as soon as Jessica began reading.

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 executed contract. b. a quasi-contract. c. an express contract. d. an implied contract.

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 express contract. b. does not owe the company for towing her car, because she did not know that she would have to pay. c. does not owe the company for towing her car, because she did not have a chance to reject its services. d. owes the company for towing her car under an implied contract.

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. void. b. executed. c. unenforceable. d. executory.

Kandis offers to pay Tim's way through college if he will give her one of his kidneys in return. He is a perfect donor match and accepts Kandis's offer, signing a contract. Their contract is a. formal. b. executed. c. void. d. voidable.

Ryan sends Michael a letter of intent for the purchase of a tract of land. The letter of intent outlines the purchase price, the legal description, and the financing terms. A paragraph is included that states this is a non-binding agreement, and is an offer to enter into negotiations. a. The letter of intent is a statement of a future intent, which is not an offer. b. The letter of intent is an offer that may be accepted by Michael. c. The letter of intent is an invitation to negotiate, which is not an offer. d. The letter of intent is an expression of opinion, and does not indicate an intention to enter into a binding agreement.

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. Definitely not, because the offeree did not accept the offer. b. Probably not, because the terms are not definite. c. Probably, because Kelly failed to communicate the offer to the offeree. d. Probably, because the parties knew what they were discussing.

The doctrine that prevents an offeror from revoking an offer once the offeree has justifiably relied to his detriment or has begun performance is known as a. promissory estoppel. b. voidability of estoppel. c. an option. d. a lapse of time.

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. contingent offer. b. counteroffer. c. rejection. d. revocation.

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 arbitrate any disputes in Colorado. b. not required to file their lawsuits in Colorado. c. required to file any lawsuits in Colorado. d. not required to accept this term of the contract.

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. covered by the UETA only if their contract involves computer information. b. covered by the UETA only if the transaction occurred after 2004. c. automatically covered by the UETA. d. not covered by the UETA.

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. Wes can receive the extra books in exchange for doing more work, as he has given good and fair consideration in exchange. b. Mary must give Wes the additional books. c. Wes will only get one more book, because two is too many more to be fair. d. Mary can sue for breach of contract, because Wes had a preexisting duty to do all of the work.

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 disaffirm this contract only if she has turned eighteen. b. can return the bracelet, but she will only get 50 percent of what she paid for it. c. cannot return the bracelet, because she has kept it too long. d. can return the bracelet and get her money back.

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. he lacked the mental capacity to enter into the contract. b. the store clerk knew he was intoxicated. c. his capacity to act would be classified as "legally unstable." d. a reasonable person would have known that he was intoxicated.

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 avoid the contract based on the general gambling rule. c. She can appeal to her governor for clemency. d. She can avoid the contract because stock market transactions are against public policy.

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 the enforcement of contracts that are not signed by all parties. b. prevent a party to a contract from testifying at trial. c. prevent enforcement of certain contracts that are not in writing. d. prevent fraud relating to certain contracts.

Samantha owes her landlord, Alec, $6,000 in rent. Samantha wants to assign to Alec the right to receive the $5,000 from Patty, but the contract between Patty and Samantha contains a clause prohibiting its assignment. If Samantha assigns the rights anyway, a court will most likely a. honor the clause prohibiting assignment only if the assignment was in writing. b. not honor the clause because if honored, it would be a restraint upon alienation. c. not honor the clause prohibiting assignment because a contract cannot prevent assignment for one to receive monetary payments. d. honor the clause prohibiting assignment because as a general rule, assignments are forbidden when a clause against it exists in the contract.