Exam 2 Halpern - Assignment Q's

Question 1

CH 13 stuff

Question 2

The test for compliance with the one-year rule considers which of the following?

The one-year rule does not apply to the statute of frauds.

Whether the contract was indeed completed in one year.

The likelihood of completing the contract within one year.

The possibility of completing the contract within one year.

The probability of completing the contract within one year.

Answer 2

The possibility of completing the contract within one year.

Question 3

Agreements regarding marriage in which one party is gaining something other than a return on his or her promise to marry ________blank.

are not enforceable

are within the statute of frauds and therefore do not need to be in writing

are not within the statute of frauds and therefore do not need to be in writing

are not within the statute of frauds and therefore must be in writing

are within the statute of frauds and therefore must be in writing

Answer 3

are within the statute of frauds and therefore must be in writing

Question 4

Do mutual promises to marry require a writing?

No, because mutual promises to marry do not fall within the statute of frauds.

Yes, because mutual promises to marry fall within the statute of frauds.

Yes, because mutual promises to marry fall within the Uniform Commercial Code.

Yes, but only if the values of the marriage is expected to be more than $500.

No, because no promises made related to marriage require a writing.

Answer 4

No, because mutual promises to marry do not fall within the statute of frauds.

Question 5

Which one of the following holds that contracts that would normally fall under the statute of frauds if negotiated by the principal must be in writing even if negotiated by an agent?

Merger clause

Equal dignity rule

Parol evidence rule

Main purpose rule

Secondary obligation

Answer 5

Equal dignity rule

Question 6

________blank seeks to blend other agreements either into the final agreement or into something explicitly identified as being outside the final agreement.

Condition precedent

Parol evidence

An admission

Promissory estoppel

A merger clause

Answer 6

A merger clause

Question 7

Suppose that the Miami Heat basketball franchise enters into a contract with a sports apparel producer and screen printer. The team agrees to purchase 100,000 T-shirts for $5 each and 25,000 hats for $6 each, indicating that the Miami Heat are the NBA champions. However, the terms of the contract indicate that the contract will occur only if the Miami Heat win the championship that year.

The above scenario is an example of what?

Parol evidence rule.

Contract that is void.

Condition precedent.

Exception to the parol evidence rule.

Contract that has been subsequently modified.

Answer 7

Condition precedent.

Question 8

Suppose Susie enters into a contract that she would give Mikhail her trailer on four acres of wooded backcountry if he agrees to supply her with $25,000 of illegal cocaine and heroin.

If Mikhail wanted to prove with oral evidence that the contract was void or voidable, could he?

Yes, parol evidence is always admissible.

Yes, void or voidable contracts are an exception to the parol evidence rule.

No, parol evidence is always inadmissible.

No, void or voidable contracts are not an exception to the parol evidence rule.

Yes, contracts with typographical errors are an exception to the parol evidence rule.

Answer 8

Yes, void or voidable contracts are an exception to the parol evidence rule.

Question 9

Suppose the local Honda dealership is offering a special lease deal on the 2017 Honda Accord LX Coupe. With a 36-month lease, the monthly price is $219, not including tax. The lease also requires a down payment of approximately $2,380, plus the first month’s payment and sales tax on the down payment. Nigel decides he wants to lease the Accord, and he enters into a contract with the Honda dealership. He makes his lease payment every month for 36 months and subsequently drives the vehicle for 36 months. (Assume that the terms of his contract mean the contract cannot possibly be performed within a year.)

Based on the terms of this contract, how long would the performance of the contract take? Would this contract fall within the statute of frauds?

It would take one year, and it would not fall within the statute of frauds.

It would take 36 months, and it would fall within the statute of frauds.

It would take one year, and it would fall within the statute of frauds.

It would take 36 months, and it would not fall within the statute of frauds.

Answer 9

It would take 36 months, and it would fall within the statute of frauds.

Question 10

Suppose the local Honda dealership is offering a special lease deal on the 2017 Honda Accord LX Coupe. With a 36-month lease, the monthly price is $219, not including tax. The lease also requires a down payment of approximately $2,380, plus the first month’s payment and sales tax on the down payment. Nigel decides he wants to lease the Accord, and he enters into a contract with the Honda dealership. He makes his lease payment every month for 36 months and subsequently drives the vehicle for 36 months. (Assume that the terms of his contract mean the contract cannot possibly be performed within a year.)

Suppose that the terms of Nigel’s contract changed. Suppose that instead of a 36-month car lease, Nigel enters into a lease for the Accord for 6 months. The 6-month lease is set to begin on the day he creates the contract at the Honda dealer and end 6 months later. Does this contract need to be in writing to be enforceable?

Yes, because the contract can be performed within a year.

No, because the contract can be performed within a year.

No, pursuant to Uniform Commercial Code Section 2-201.

Yes, because the contract is for the sale of goods more than $500.

No, because the contract is for the sale of goods totaling more than $500.

Answer 10

No, because the contract can be performed within a year.

Question 11

Suppose that instead of leasing the Accord, Nigel decides to buy the Honda Accord for $22,180. Would this contract need to be in writing to be enforceable?

Yes, pursuant to the parol evidence rule.

No, pursuant to the statute of frauds.

No, pursuant to UCC, Section 2-201.

Yes, pursuant to UCC, Section 2-201.

Yes, pursuant to the equal dignity rule.

Answer 11

Yes, pursuant to UCC, Section 2-201.

Question 12

CH9 Assignment

Question 13

Under what circumstance could lack of genuine assent apply to a contract?

The offeror finds someone who will pay more for the same product and makes a new contract with that person.

The offeror engages in fraud and misrepresentation with respect to the contract.

The offeree breaks the contract.

The offeree no longer “assents” to the contract, even though he signed the contract.

The offeree decides he no longer wishes to accept the contract.

Answer 13

The offeror engages in fraud and misrepresentation with respect to the contract.

Question 14

The offer and acceptance together constitute the ________, which is the first element of a contract.

capacity

consideration

agreement

lack of genuine assent

legal object

Answer 14

agreement

Question 15

Each of the following is true of the law of contracts except

the law of contracts serves as statutory law.

originated in judicial decisions in England.

not all states interpreted all aspects of it in the same way.

shaped by U.S. legislatures and court rulings.

primarily common law.

Answer 15

the law of contracts serves as statutory law.

Question 16

A(n) ________ contract is a contract in which one or both parties has the ability to either withdraw from or enforce the contract.

void

unenforceable

executory

voidable

executed

Answer 16

voidable

Question 17

________ are created by the courts to prevent one party from being unjustly enriched at the expense of another.

Executed contracts

Quasi-contracts

Implied contracts

Unenforceable contracts

Executory contracts

Answer 17

Quasi-contracts

Question 18

Which one of the following is a contract that arises from the conduct of the parties rather than their words?

Express
Unilateral
Implied
Informal
Bilateral

Answer 18

Implied

Question 19

A bond used as bail in a criminal case is which type of contract?

Letter of credit
Informal contract
Negotiable instrument
Formal contract
Implied contract

Answer 19

Formal contract

Question 20

If no means of communicating the acceptance is specified, what type of means of accepting a contract is generally not acceptable?

Telephone
Mail
E-mail
Fax
All of these are generally acceptable ways to communicate an acceptance.

Answer 20

All of these are generally acceptable ways to communicate an acceptance.

Question 20

In a(n) ________, the seller is treated as making an offer to accept the highest bid and therefore must accept it.

certain and definite terms
auction with reserve
auction without reserve
primary negotiations
auction

Answer 20

auction without reserve

Question 21

Under the common law, which of the following qualifies an acceptance as a valid acceptance?

Manifestation of intent to be bound by the acceptance.

Communication to the offeror.

Agreement to the definite and certain terms of the offer.

A valid acceptance requires all three of these elements.

A valid acceptance requires none of these elements.

Answer 21

A valid acceptance requires all three of these elements.

Question 22

A store places an advertisement in the newspaper for “Sale on Dell laptops – All Dell laptops for sale for $500 the last week in July!” Is the store making an offer?

No, because this is false advertising.

Yes, because the ad specifies a limited quantity of computers is available.

Yes, because a reasonable person would expect the store to be able to offer a computer to everyone who comes.

No, the store is merely inviting potential customers to come to the store and offer $500 for a computer.

Yes, all advertisements count as valid offers.

Answer 22

No, the store is merely inviting potential customers to come to the store and offer $500 for a computer.

Question 23

Bobby tells Alyssa (Shelley’s agent) to tell Shelley he will sell his used Jeep to Shelley for $5,500 cash. Shelley’s brothers, Kyle and Chris, overhear the offer. Who can accept Bobby’s offer?

Shelley and Alyssa (on behalf of Shelley).

Only Alyssa (on behalf of Shelley).

Alyssa (on behalf of Shelley), Kyle, and Chris.

Shelley, Kyle, and Chris.

Shelley, Alyssa (on behalf of Shelley), Kyle, and Chris.

Answer 23

Shelley and Alyssa (on behalf of Shelley).

Question 24

Which one of the following is considered to be a legally binding offer? Advertisements Auctions without reserve Interest in an exchange Auction with reserve Invitation to negotiate

Answer 24

Auctions without reserve

Question 25

Todd leaves his babysitter, Zach, a voice mail message saying, "I need someone to watch little Joey and Hilary on Friday night. If you can babysit on such late notice, I'll pay you an extra $40 on top of your usual rate. If I don't hear from you by 5 p.m. tomorrow, I'll assume we have a deal." If Zach does not call back, has a contract been created? No, because voice mail messages can never convey an offer. Yes, because Zach is his babysitter and they talk often, so it is assumed if he doesn't call back he wants the job. Yes, because silence under these circumstances does constitute acceptance. Yes, because Todd made the offer to Zach. No, because silence under these circumstances will not constitute acceptance.

Answer 25

No, because silence under these circumstances will not constitute acceptance.

Question 26

The mirror-image rule says that the terms of the acceptance must mirror ________blank. the terms agreed on by both parties in negotiations the terms of the offer the mail-box rule the authorized means of acceptance the terms of the acceptance

Answer 26

the terms of the offer

Question 27

CH 10 Assignment

Question 28

For a court to enforce a promise, who must offer consideration? The side offering the contract. No sides. Courts never enforce promises. Both sides. The side accepting the contract.

Answer 28

Both sides.

Question 29

Which of the following terms is not a condition required in promissory estoppel? I. One party makes a promise knowing the other party will rely on it. II. The other party does rely on the promise. III. The only way to avoid injustice is to enforce the promise.

Answer 29

All are required.

Question 30

Suppose Victor promises to stop smoking cigarettes during the winter. What type of promise has Victor made? No promise was made. A promise to refrain from doing something. A promise to do something. A detriment to the promisee. A benefit to the promisor.

Answer 30

A promise to refrain from doing something

Question 31

Suppose your boss tells the people you work with, "If any worker shows up at my house on Saturday and helps me clean my pool for three hours, I will pay the worker $75." You show up and help with the pool cleaning. What type of contract did you and your boss create? Unilateral contract. Bilateral contract. A promise to refrain from doing something. No contract was formed. A detriment to the promisee.

Answer 31

Unilateral contract.

Question 32

Suppose Xavier receives an offer to play on a minor-league hockey team a few states away from where he currently lives. He moves out of his apartment, turns down offers from other teams, and moves all his possessions to a new apartment close to the hockey arena. After moving there, Xavier is then told there is no position for him anymore! May he sue the hockey team? No, this is past consideration. Yes, this situation is a promise under seal. No, there is no consideration to form a contract. Yes, this situation looks like promissory estoppel. No, no possible remedy exists for this situation.

Answer 32

Yes, this situation looks like promissory estoppel.

Question 33

For a promise to be enforced by the courts, there must be ________. a benefit to the promisor past consideration consideration lack of consideration promissory estoppel

Answer 33

consideration

Question 34

Natalie promises Brett that she will pay him $1,000 for painting her house. Brett then agrees and purchases the painting materials, costing him $300. The following day Brett arrives at Natalie’s house to paint but she had hired Kobe instead. Is Brett entitled to damages? No, Natalie whomever she wants to paint her house. No, Brett did not sign a contract with Natalie to paint the house. Yes, Brett relied on Natalie’s promise and bought all the paints with his own money. Yes, Brett showed up to Natalie’s house to paint therefore he is entitled to be paid.

Answer 34

Yes, Brett relied on Natalie’s promise and bought all the paints with his own money.

Question 35

Promising to do your roommate’s laundry for the week is an example of what type of consideration? An example of consideration is a detriment to the promisor. An example of consideration is a promise to do something. An example of consideration is a promise to refrain from doing something. An example of consideration is a benefit to the promisor.

Answer 35

An example of consideration is a promise to do something.

Question 36

Paul, who is 25 years old, promises to stop drinking alcohol until he passes the CPA (Certified Public Accountant) exam. What type of consideration does the example suggest? A detriment to the promisee. A promise to do something. A promise to refrain from doing something. A benefit to the promisor.

Answer 36

A promise to refrain from doing something.

Question 37

Which of the following is not a condition of promissory estoppel? One party makes a promise knowing the other party will rely on it. The other party relies on the promise. Consideration must clearly exist. The only way to avoid injustice is to enforce the promise.

Answer 37

Consideration must clearly exist.

Question 38

Which of the following is an example of a unilateral contract? Bob agrees to sell his motorcycle to Tommy for $6,000. Tommy agrees to buy Bob’s motorcycle for $6,000. Abbey promises to mow Bailey’s lawn for $50. Bailey agrees to pay Abbey $50. David tells Elizabeth that he will pay her $1,000 if she paints his house before October 1st. Frank offers to clean Howard’s house for $125. Howard agrees to pay Frank $125.

Answer 38

David tells Elizabeth that he will pay her $1,000 if she paints his house before October 1st.

Question 39

Ch 11 Assignment

Question 40

Which of the following types of agreements is not a type of agreement that is generally illegal in many states? Agreements regarding usurious loans. Agreements for the sale of a used product. Agreements to commit a crime. Agreements regarding gambling. Agreements to commit a tort.

Answer 40

Agreements for the sale of a used product.

Question 41

A door-to-door hearing aid salesman specifically targets elderly clients. When the clients ask questions about the contract, the salesman is not truthful with them entirely. The answers to their questions are usually found on the tiny, hard-to-read print on the very back of the long contract the clients must sign. The salesman knows that his clients have poor vision and hearing, and uses this to his advantage in his sales techniques and with the small contractual terms. The scenario above is a possible example of which type of agreement? multiple choice In pari delicto Substantive unconscionability Covenant not to compete Procedural unconscionability Exculpatory clause

Answer 41

Procedural unconscionability

Question 42

In some states, courts consider the purpose of the licensing statute when determining the effect of the agreement. If a licensing statute is intended simply to generate revenue, then the contract of an unlicensed person is ________. valid void nullified illegal unenforceable

Answer 42

Valid Unlincensed individual can STILL enforce the contract

Question 43

Covenants not to compete in conjunction with the sale of a business are generally _______ if they are for a reasonable length of time and involve a reasonable location. invalid illegal enforceable unenforceable hurtful to the public interest

Answer 43

Enforceable

Question 44

A(n) ________ releases one of the contracting parties from all liability, regardless of who is at fault or what injury is suffered. substantive unconscionability clause severable contract procedural unconscionability clause indivisible contract exculpatory clause

Answer 44

exculpatory clause

Question 45

_______ is the possession of a mental or physical defect that prevents a natural person from being able to enter into a legally binding contract. Implied ratification Incapacity Disaffirmance Mental capacity Emancipation

Answer 45

Incapacity

Question 46

After a football game, Tyler and Austin want to enter into a contract together. Tyler is completely sober, but he knows Austin is very intoxicated and is so impaired that he is unable to understand the terms of the contract. If they enter into a contract, the contract would be ________. multiple choice legally binding voidable void valid an implied ratification

Answer 46

Voidable

Question 47

The following contracts would be deemed illegal by a state or federal statute EXCEPT: Agreements to commit a crime or tort are illegal in all states. Agreements regarding usurious loans may be illegal in some states. Agreements where an intoxicated person is so impaired that he is unable to understand his legal obligations under the contract he is entering into. Agreements regarding gambling are illegal in most states. Agreements that violate Sabbath or Sunday laws are illegal in some states.

Answer 47

Agreements where an intoxicated person is so impaired that he is unable to understand his legal obligations under the contract he is entering into.

Question 48

Usury occurs when: a party gives a loan at an interest rate below the legal minimum. a party gives a loan at an interest rate above the legal maximum. a party gives a loan at the market interest rate or above. a party gives a loan at an interest rate below the market interest rate. a party gives a loan at an interest rate below the market rate, yet above the legal maximum.

Answer 48

loan at an interest rate above the legal maximum

Question 49

When does usury occur?

Answer 49

Interest rate EXCEEDS legal maximum in a state

Question 50

Which of the following would be an example of an anticompetitive agreement? Rivals within an industry mutually agree on a price that will be offered to suppliers. Rivals within an industry try to outbid each other on the price that will be offered to suppliers. Rivals within an industry look to different sources for the price that will be offered to suppliers. Rivals file a lawsuit to let the court determine the price that will be offered to suppliers.

Answer 50

Rivals within an industry mutually agree on a price that will be offered to suppliers.

Question 51

Under an adhesion contract, negotiations are: extensive. limited. modified. nonexistent.

Answer 51

nonexistent

Question 52

Which of the following businesses cannot enforce an exculpatory clause? A private gym Public utilities A dry cleaner A ski resort

Answer 52

public utilities