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WorksheetsBusiness Law Exam 2
Total questions: 54
Worksheet time: 28mins
Fabien offers to sell his Graphic Signs LLC business to Hanna for $100,000. Hanna replies, "The price is too high, I will pay $75,000." Hanna has
Accepted the offer
made a counteroffer without rejecting the offer
rejected the offer and made an counteroffer
rejected offer without making a counteroffer
The offeror's act of withdrawing an offer is referred to asL
Repudiation
counteroffer
revocation
invitation to offer
Rita Contracts to work for Social Media Corporation (SMC) during April for $4,500. On March 31, SMC cancels the contract. Rita declines a similar job with Tech Talk, Inc. which would have paid $3,500. Rita files a suit against SMC. As compensatory damages, Rita can recover..
$0
$1,000
$4,500
$3,500
Before either party to a contract has a duty to perform, one of the parties may refuse to perform that party's contractual obligations. This is referred to as
undue influence
material breach
anticipatory repudiation
duress
Ordinarily, every party to a contract has a duty to come forward and disclose facts
True
False
A seller who places goods at the disposal of a buyer has tendered delivery, but cannot yet demand payment
True
False
Once the electronic record ____ or comes under the control of the recipient, the UETA deems it to have been sent
is told in person
is told over the phone
leaves control of the sender
is mailed via U.S mail
Intoxicated, Efron enters a contract for the sale of his business, Freight Dispatch, to Gretel for less than its market value. This contract is enforceable if, at the time,
Efrons intoxication was purely voluntary
Gretel fraudulently induced Efron to become Intoxicated
Gretel was also intoxicated
Efron understood the legal consequences
Some torts can be criminal as well as civil, depending on the laws in place
True
False
To avoid a contract, both parties must fully perform their respective legal obligations
True
False
A covenant not to compete imposed, as part of a sale of an ongoing business will be enforced even if the restrictions are unreasonable
True
False
If contracting parties attach materially different meanings to a contract word or term subject to more than one reasonable interpretation, the contract is void
True
False
Main St Market Inc, and Natural food corporation discuss the terms of a contract. They exchange "signed" e-mails that summarize the terms on which they agree. Between these parties, the e-mails are
a pre-contract
no contract
a written contract
an oral contract
Jill enters into a contract to buy a certain office building from Kim. At the closing, Kim refuses to transfer title. In a suit for breach, Jill should seek specific performance to
reform the contract to reflect the parties' true intentions
return the parties to the positions they occupied before the contract
make the terms reasonable, and enforce the contract as reformed
obtain the exact bargain promised in the contract
Before either party to a contract has a duty to perform, one of the parties may refuse to perform that party's contractual obligations. This is referred to as an anticipatory repudiation
True
False
Persuasion that induces a person to act according to the will of a dominant party is undue influence
True
False
Luke puts his motorcycle up for sale via a post on an online auction site. This is
a price list, not an offer
an offer
an invitation to negotiate, not an offer
a request, not an offer
These basic types of situations may qualify as grounds for the discharge of contractual obligations based on impossibility of performance (Choose all applicable answers)
when the specific subject matter is destroyed
When an essential party to the completion of the contract dies
it is a little more expensive to fulfill the contract
when a change in the law renders performance illegal
If a contract performance is rendered directly to a third party, the third party is an incidental beneficiary
True
False
If a condition to a lease for university housing that the tenant must be student is not satisfied, then the landlords obligations under the lease are discharged
True
False
Kohl receives from Lily a camera stolen from Mark. Kohl knows the camera is stolen, and he intends to keep it, Kohl is..
tortiously liable
civilly liable
criminally liable
none of the choices
Under the UETA if an electronic record or signature is the act of a particular person, the record, or signature may be _____ that person
attributed to
any symbol of
forced upon
legally obligated to
Debt collection service unto a contract to employ Emma as a billing manager for two years. During the first year, Emma is often absent without explanation, and when presents fails to adequately do her job. This
Suspends the employers duty to perform
discharges the employer from the contract
has no effect on the employers performance
changes the employers duties under the contract
The Racketeer influenced and corrupt organizations act has become an effective tool in attacking
defenses that excuse criminal behavior
organized crime
criminal activities occurring online
business persons who use bribery to secure foreign contracts
Inez hires Josh to paint her portrait to her satisfaction for $4,000. When Josh finishes the portrait, Inez announces that she is not satisfied with it. Inez
must pay Josh half of the contract price as a compromise
must pay Josh only the cost of his materials
does not have to pay Josh
must pay Josh the contract price
Donald is a minor. He can enter into any contract an adult can, provided
the adult is willing to enter contracts with minors
the contract is not one prohibited by law for minors
Donald is willing to disaffirm the contract
an adult is willing to ratify the contract
At an auction, Ben bids on 1957 Chevy coupe, believing that it is worth more than the price asked. When the car proves to need more repairs than Ben estimated, and thus is worth less as is, Ben is
Not liable on the bid, because the auctioneer misrepresented the value
Not liable on the bid, because he underestimated the cost of the repairs
not liable on the bid, because the need for the repair is not a material fact
still liable on the bid
Dean solicits investors for a nonexistent business, eApps. Dean is arrested and charged with "mail fraud". This requires intent to
claim that an item is "in the mail" when its not
defraud postal authorities
defraud the public
use the U.S mail
Quasi Contracts are imposed on parties in the interest of fairness and justice
True
False
Reed agrees to sell his sports equipment store to Taylor. As part of the sale, Reed promises not to open a similar, competing store anywhere. This promise is most likely
invalid because of the unreasonable terms of area and time
valid because it is part of a sale of an ongoing business
valid if both parties are justifiably ignorant of the facts
invalid because because it is part of a sale of an ongoing business
If a breach of contract is minor, the nonbreaching party's duty to perform is discharged
True
False
A written contract must consist of a single document to constitute an enforeable contract
True
False
Red offers to pay Sara to deliver Certain documents within thirty minutes. Sara can accept the offer only by completing the task within the deadline. If she does, Red and Sara will have
a bilateral contract
a void contract
an executive contract
a unilateral contract
Under self-defense, a person may use whatever force necessary if they fear
any threat
imminent danger
offense
any injury
Under a contract with River Valley Farm, Sancho begins grading a terraced hillside for planting. Halfway through the project, Sancho asks for $5,000 over the contract price, claiming an increase in the "cost of doing business" The farm agrees, but later refuses to pay. The agreement to pay more is
enforceable
unenforceable, because Sanchos request modified the contract
unenforceable, because the farms promise was illusory
Unenforceable, because Sanchos performance was a preexisting duty
Sal is mentally incompetent but has not been adjuged by a court to be incompetent. Sal enters into a contract with Tony for the cleaning and maintenance of Uptown office building. Most likely the contract is
enforceable if Sam is the owner of the building
Voidable if Sal did not comprehend the consequences
enforceable if Tony did not know that Sam was mentally incompetent
void
Oceans, Inc., a seafood distributor, agrees to buy from Paul, a commercial fisherman, any "overstock" of fish that Paul catches in excess of his legit limit. This agreement is most likely
Voidable
Quasi
enforceable
void
For a promissory estoppel to occur, the following requirements need to be met: (choose all applicable answers)
The promisor should have expected the promisee to rely on the promise
There must be a clear and definite promise
the promisee has a reasonable reliance on the promise in a definite and substantial manner
enforcement is necessary to prevent an injustice
the parties changed their minds so there can be no enforcement
A party who has justifiably relied on an oral contract may use ___ if the courts will not enforce it, because of the failure of a writing
undue influence
duress
promissory estoppel
breach of contract
Oscar owns Payroll company, a bookkeeping service. Oscar pays ripley $5,000 to steal a list of competitors clients. This deal is
voidable at the option of the party having less bargaining power
Voidable at the option of either party
void
enforceable
Fez enters into a contract to buy 350 acres from Grain farm to cultivate hops and open a brewery. Fez fails to make the purchase. Grain Farm's remedy is most likely
the amount that Fez expected to invest in the brewery
a percentage of Fezs unrealized profit
nothing--Grain farm still owns the land
the difference between the contract and market prices of the land
Data Inc., offers to provide certain services to Enterprise LLC, but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $15,400. Enterprise accepts the written offer. Enterprise's best argument in favor of enforcement of the contract is that
the price was below the prices of comparable services
a mistake of value does not afford relief from a contract
a unilateral mistake does not afford relief from a contract
a bilateral mistake does not afford relief from a contract
The crime victim must bring the case against the defendant
True
False
A court will only impose a quasi-contract if the parties originally had a contract with one another
True
False
State University provides housing on campus, and in some adjacent off-Campus neighborhoods. To lease a university house or apartment, a person must be a student at State. This requirement is
a breach of contract
an operation of law
a novation
a condition
Generally neither party to an illegal contract can sue for breach
True
False
All of these are types of damages in a breach of contract action ( choose all applicable answers)
punitive
wrongful
compensatory
nominal
A minor can enter into any contract an adult can, without exception
True
False
Restore Inc, contracts to resurface the pools at swim park by June 1. Restore knows that if performance is not timely, Swim Park will have to delay its seasonal opening. Restore finishes the Job June 15. In a suit for breach, Swim Park can recover
nothing the work is done
the loss of profit from the delayed opening
the cost of new pools
the difference between the contract and market prices for the work
Bill and Charlene enter into a contract for the clearing, plowing, and preparing of Charlenes 100- acre tract for which she agrees to pay $1,000. Bill transfers his duty under this contract to Dewey. With respect to the duties under the original contract, this transfer
is invalid transfer of non-transferable obligation
does not relieve Bill of the potential obligation to perform
extinguishes Bills obligation to perform
Requires a special form to constitute a valid transfer
Crimes are offenses against society as a whole
True
False
____ states that all evidence derived from illegal means, normally must be excluded from the trial proceedings
the Miranda rule
Exclusionary Rule
Fruit of the poisonous tree
self-incrimination
Max orally agrees to construct two outbuildings on Ned's ranch for a stated price. Max performs, but Ned does not pay. To recover on a theory of quasi contract, Max must show that if Ned were allowed to retain the benefit of their bargain, Ned would
profit from Max's performance
be unjustly enriched
be restored to the status quo
obtain a reasonable exchange of values
A person arrested for a crime must ask for a lawyer specifically, Saying "maybe it would be a good idea to get a lawyer" is not enough
True
False
