Exam 3 Review

Deep Earth Extraction Inc. operates a facility near Estuary Bay. Discharging waste from the facility into the bay can result in...

• penalties and damages.

• penalties only.

• damages only.

• none of the choices.

Home Furnishing Store’s contract for a sale of its appliances provides that the only remedy for breach is replacement, repair, or refund of the purchase price. With respect to this provision, on a customer’s suit for breach, a court is most likely to...

• enforce it.

• reform it.

• refuse to enforce it.

• reallocate the risk expressed in it.

Eugene, an accountant, convinces his client Faye to enter into a contract to invest her savings in Gather, a non-existent social media site. There is clear and convincing evidence that Faye did not act out of her free will. This is...

• fraudulent misrepresentation.

• fraudulent misrepresentation or undue influence.

• duress.

• all of the choices.

Steel Mill Inc. agrees to deliver a certain quantity of steel to T-Bar Framing Corporation. The agreement states that delivery is to be within “9” days, although the parties intend “90” days. The seller cannot convince the buyer to amend the contract. The most appropriate remedy is most likely...

• 1. a quasi contract.

• 1. reformation.

• 1. rescission.

• 1. specific performance.

Regulations governing air pollution cover mobile and stationary sources. Those who may be subject to penalties for violations of the Clean Air Act include...

• corporate officers who knowingly violate the act.

• persons who provide information about violators but otherwise fail to act.

• private citizens who fail to sue violators.

• none of the choices.

A contract to do something that is prohibited by statute is...

• enforceable if the parties are aware of the prohibition.

• enforceable if the parties are ignorant of the prohibition.

• enforceable if the contract does not negatively affect society.

• unenforceable.

Reese contracts to sell a Spicy Pizza restaurant to Titian. As part of the deal, Reese agrees not to open a competing business within a hundred-mile radius for ten years. Reese later sues Titian, alleging that the agreement is unreasonable. To enforce the covenant not to compete, the court will most likely...

• award damages for Reese’s complete compliance with the terms.

• reform the contract to make the distance and time limits reasonable.

• rescind the contract and require restitution.

• order specific performance.

The main goals of the Clean Water Act include...

• making water safe for swimming.

• protecting fish and wildlife.

• eliminating the discharge of pollutants into water.

• all of the choices.

Raj agrees to work as a freight broker for Shipping Inc. In determining whether a contract has been formed, an element of prime importance is the parties’...

• intent.

• objectives.

• subjective beliefs.

• motives.

Luc, a vehicle dealer, offers to sell Mel a truck and trailer, which Luc claims can haul a certain weight. He knows nothing about the capability of the truck, but it is not as he asserts. Mel buys the truck. On learning the truth, Mel confronts Luc, who says he was not trying to fool Mel—he was only trying to make a sale. This is...

• a mistake of value.

• a valid defense.

• fraudulent misrepresentation.

• puffery.