Bus 207 Final Exam

Front 1

An agreement may be found to be void due to illegality because

Back 1

1. it requires the commission of a illegal act
2. is is made illegal by statue
3. it is contray to public policy

Front 2

When one or both parties to an illegal bargain are ignorant of the facts that made the bargain illegal

Back 2

Allow recovery for performance rendered before the parties learned of the illegality

Front 3

A person who enters into an illegal contract may recover any consideration when

Back 3

the party rescinds the contract before any illegal act has been performed

Front 4

This law prohibits charging more than a stated amount of interest for the use of money

Back 4

Usury law

Front 5

Harold makes an oral agreement to pruchase Tina's boat for $700. Under the UCC

Back 5

the agreement is barred by the statue of frauds

Front 6

Oral contracts that come under the provisions of the statue of frads are

Back 6

Unenforceable

Front 7

When parties to an oral contract have both fully performed their obligations under the contract, the parties are

Back 7

not allowed to rescind the contract

Front 8

the equitable doctrine of _____
allows parties to recover under oral contracts which the statute of frauds would have ordinarily rendered unenforceable

Back 8

Promissory estoppel

Front 9

According to the leading object doctrine, promises of third parties to a contract who are primarily motivated by a desire to secure some persoanl benefit

Back 9

Fall outside the scope of the statute of frauds

Front 10

Who among the following cannot enforce a contract

Back 10

Incidental beneficiaries

Front 11

Ales owes Bard a debt. Bard assings the debt to Carl, who fails to give notice to Alex. Alex pay the debt to Brad. In this situation

Back 11

Carl can recover from Brad under the assignment contract or quasi-contract theory

Front 12

Does a assignment require consideration. True or False

Back 12

False, it usually does not require consideration

Front 13

Unless an assignment clearly indicates a contrary intent, courts today tend to interpret assignments as including a delegation of the assignor's duties. A promise on the part of the assignee to perform these duties

Back 13

in enforcable by either the promisor or the assignor

Front 14

Rocky's duty to perform as a basketball player for a NBA team would be

Back 14

Not Delegable

Front 15

Tony contracted to buy wheat from farmer Brown. It was contracted that Toby would pay farmer Brown, three days after the delivery of the wheat. Brown's delivery would be a ____of Tony's duty to pay

Back 15

Constructice condition precedent

Front 16

Metz and Desman contracted for Metz to build a house for Desman on Desman's lot according to specifications provided by Desman. The contract provided that Metz would be paid $125,000 for this. Metz unintentionally deviated form the specification in several minor respects. The house is soundly constructed and Metz completed the work with the promised time. Desman refused to pay Metz any of the $125,000, arguing that the house did not conform to the specifications. In this case

Back 16

if the court finds that Metz has substantially performed, he will be able to recover the contract price less any damages caused by his failure to perform as promised

Front 17

Personal service contracts are the only contracts which terminate with the promisor's death. True or False

Back 17

True

Front 18

An award for loss in value of a promised performance is

Back 18

Compensatory

Front 19

A Liquidated damages provision will be enforced only when

Back 19

the amount specified is reasonable

Front 20

Anela went to "hairs r Us" to have her hair colored flaMe red and to get a permanent wave, Unfortunatley,the hair color contained a chemcial that reacted to the permanent wave solution resulting in Angels's hair turning a bright green and falling out. Under these circumstances, would a court likely apply code provisions in determing the rights and responsibilities of the parties?

Back 20

code provisions would not apply because Angela entered into a contract which was prodoinantly a service contract

Front 21

Under Article 2 of the UCC Tec-E, a software company, contracts to sell a database program to a local NPO

Back 21

is a merchant for the purposes of the contract in question

notes 19-5

Front 22

Adam offered to buy automoblie batteries from Ben. Adam's purchase order was complete and certain as to all material terms except price, which was omitted. If Ben accepts Adam's offer and the price of the automobile batteries is well established in the industry, does a contract exist between Adam and Ben?

Back 22

A contract was formed between Adam and Ben ever though the price term was omitted

Front 23

Under the UC, if the contract is silent about the place for delivery, the goods are to be deliver:

Back 23

At the seller's place of business

Front 24

When a contract merely requires the seller to ship the goods, title passes to the buyer when:

Back 24

the seller delivers the goods to the carrier

Front 25

The statement regarding a product might be interpreted as either an opinion or an express warranty depending on

Back 25

The relative knowledge of the parties involved

Front 26

Fungible goods are

Back 26

Mixed goods which are identical and cannot be separated (such as granin or coal)

Front 27

Disclaimers of warranty may be unconscionable in all of the following except
1 if there is a great disparity of bargaining power between the buyer and the seller
2if the court believes that the disclaimer was forced on the buyer, with no chance to bargain over its form
3 if they are conspicuous (obvious)
4 if the case of a personally injured consumer

Back 27

3. if they are conspicuous(obovious)

pg 345 parag 2

Front 28

According to the Magnuson-moss Warranty Act and the FTC guidelines, when sellers give a written warrant, they must satisfy all of the following except:
1 it should be included in a single document
2 it should be written in simple and understandable language
3 if should include a clear description of what is covered ans what is excluded by the warranty
4. if should allow the seller to choose between a refund and a replacement after the product has been repaired a numeber of times

Back 28

4. it should allow the seller to choose between a frefund and a replacement after the product has been repaired a number of times.

notes 20-7

Front 29

Which of the following describes an action where liability of a seller is vase on the theory that the manufacturer failed to use reasonable care to avoid foreseeable injury to the ultimate user of consumer?
1 negligence
2 strict liability
3 breach of warranty
4 magnuson-moss act

Back 29

1. negligence

notes 20-12

Front 30

ABC builder and XYZ lumber had a contract calling XYZ lumber to deliver a certain quantity of bricks to AMCS place of business on the first of every month for one year. The contract also said that any modifications had to be made in writing. XYZ delivered the bricks one week late for the first 6 months but ABC did not object.
When XYZ delivered the bricks late in the 7th month, ABC attempted to concel the contract. what is the result:

Back 30

ABC has waive its right to cancel the contract

Front 31

if there is no agreement between the parties t delivery to happen in installments than all the goods

Back 31

must be delivered to the buyer in a single delivery

Front 32

All of the following are treated as acceptance by a buyer except:
1 indicating that he will take them
2 failing to reject them within a reasonable period of time
3 paying for the goods without inspecting them
4 treating the goods as if he owns them

Back 32

3. paying for the goods without inspecting them

Front 33

When goods are shipped COD

Back 33

they buyer must pay for them before inspection them

Front 34

all the the following are the option of a buyer when the goods delivered do not conform to the contract except:
1 that the buyer may reject all of the goods
2 that the buyer cannot accept only part of a commercial unit and reject the rest
3 that the buyer can reject an installment delivery even if the nonconformity can be correct by the seller
4 that the buyer can accept all of the goods or accept any commercial unit and reject the rest

Back 34

3. that the buyer can reject an installment delivery even if the nonconformity can be corrected by the seller

Front 35

The objective of providing remedies for breach of a sales contract is to

Back 35

put the injured person in the same position as if the contract had peen performed

Front 36

All of the following are true of liability for consequential damages except:
1 it may be limited by an agreement between the parties
2 it may be excluded by an agreement between the parties
3 if odes no allow for recovery of damages in case personal injury is caused
4 it is not enforced if it would be unconscionable

Back 36

3. it does not allow for recovery of damages in case personal injury is caused

Front 37

Under the UCC, a lawsuit for breach of a sales contract must be filed:

Back 37

within 4 years after the breach occurs

Front 38

When a warranty covers the future performance of goods, the breach occurs:

Back 38

the moment the buyer discovers the defect in the product

Front 39

If the seller is in the process of manufacturing the goods when the buyer breaches the contract, the seller may do all of the following except:
1 complete the manufacture of the goods
2 stop the manufacturing
3 sell the uncompleted goods for their scrap or salvage value
4 complete the manufacturing of goods that are unique in nature

Back 39

4. complete the manufacturing of goods that are unique in nature

Front 40

acceptance by a buyer is

Back 40

1 indicating that he will take them
2 failing to reject them within a reasonable period of time
3 treating the goods as if he owns them

Front 41

Negligence

Back 41

a person owes a duty of care to avoid foreseeable injury to others

Front 42

if the seller is in the process of manufacturing the goods when the buyer breaches the contract the seller may do

Back 42

1. complete the manufacture of the goods
2. stop the manufacturing of the goods
3. sell the uncompleted goods for their scrape or salvage value

Front 43

disclaimers of warranty may be unconscionable due to

Back 43

1.if there is a great disparity of bargaining power between the buyer and the seller
2. if the court believes that the disclaimer was force on the buyer, with no chance to bargain over its form
3. if the case of a personally injured consumer

Front 44

acceptance of a buyer are

Back 44

1. indicating that he will take them
2. failing to reject them within a reasonable period of time
3.treating the goods as if he owns them

Front 45

These are true of liability for consequential damages

Back 45

1. it may be limited by an agreement between the parties
2. it may be excluded by an agreement between the parties
3. it is not enforced if it would be unconscionable

Front 46

unconscionable

Back 46

not guided or controlled by conscience

Front 47

Consequential

Back 47

of a nature of a secondary result

Front 48

According to the Magnuson-moss Warranty Act and the FTC guidelines, when sellers give a written warrant, they must satisfy the following

Back 48

1. it should be included in a single document
2. it should be written in simple and understandable language
3.it should include a clear description of what is covered and what is excluded by the warranty

Front 49

Promissory estoppel

Back 49

an equitable doctrine allowing parties to recover under oral contracts which the statute of frauds would have ordinarily rendered unenforceable

Front 50

UCC states that contract of the sale of goods costing $500 or more are?

Back 50

not enforceable without a writings or other specified evidence

Front 51

an agreement may be found to be void due to illegality because of all the following reasons except
1 it requires the commission of an illegal act
2. it is made illegal by statue
3. it is contrary to public policy
4. it protects the interests created by the contract to a reasonalbe measure

Back 51

4. it protects the interests created by the contract to a reasonable measure