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172 Cards in this Set

  • Front
  • Back
As a judge, Nina decides cases that involve principles of various sources of law. Common law is

a. administrative law.
b. case law.
c. civil law.
d. statutory law.
B. Case Law
Leona enters into a contract with Munchie Bakery to cater a sales conference. When the conference is postponed indefinitely, Leona asks a court to cancel the contract. This request involves

a. an equitable remedy.
b. an unenforceable demand.
c. a remedy at law.
d. a type of harm.
A. an equitable remedy
Diana is a state court judge. In her court, as in most state courts, she may grant in a particular case

a. a legal remedy only.
b. an equitable remedy or a legal remedy but not both.
c. equitable and legal remedies.
d. neither an equitable nor a legal remedy.
C. equitable and legal remedies.
Jill is an appellate court judge. In this capacity, Jill establishes a rule of law. Under the doctrine of stare decisis, the principle must be adhered to by

a. all courts.
b. courts of lower rank only.
c. that court and courts of lower rank.
d. that court only.
c. that court and courts of lower rank.
In Sales Distribution Corp. v. Consumer Products Co., the court decides that a precedent is incorrect or inapplicable. The court

a. may rule contrary to the precedent.
b. must apply the precedent.
c. must ask a higher court to rule on the case.
d. must refuse to decide the case.
a. may rule contrary to the precedent.
Brian's pick-up truck collides with Miranda's semi-trailer on a county highway. Weighing Brian's liability for the collision, Rachel, a judge, reasons by analogy. To reason by analogy is to

a. compare the facts in previous cases and apply the same rule of law.
b. compile summaries of court decisions on particular topics.
c. employ logic through a major premise, a minor premise, and a conclusion.
d. proceed from one point to another with the focal point being the result.
a. compare the facts in previous cases and apply the same rule of law.
Quinn is a state court judge. In the case of Royal Banners, Inc. v. Superior Flags Co., Quinn establishes a logical relationship by comparing the facts in the case to the facts in other cases and, to the extent the facts are similar, applies the same rule. This is

a. deductive reasoning.
b. faulty reasoning.
c. linear reasoning.
d. reasoning by analogy.
d. reasoning by analogy.
Julius is a judge. How the Julius and the judges in other courts interpret a particular statute determines

a. how that statute will be applied.
b. how the law needs to be changed.
c. how the common law should be codified.
d. nothing.
a. how that statute will be applied.
To Serena, the written law of a particular society at a particular time is most significant. Serena is

a. a legal positivist.
b. a legal rationalist.
c. a legal realist.
d. a person who adheres to the natural law tradition.
a. a legal positivist.
The title of a case appears as "Duck Down Corp. v. Egret Feathers Co." The party in whose favor the case was decided

a. could be either party.
b. might be neither party.
c. must be Duck.
d. must be Egret.
a. could be either party.
The state legislature of Kansas enacts a statute to regulate trucking that affects interstate commerce. This statute will be balanced in part in terms of

a. the courts' authority to determine that a law is unconstitutional.
b. the purpose of interstate commerce.
c. the state's interest in regulating the matter.
d. the statute's impact on noneconomic activity.
c. the state's interest in regulating the matter.
Congress enacts the Supplemental Income Tax Act (SITA) to exempt the citizens of Louisiana from their federal taxes until New Orleans is rebuilt from the ravages of Hurricane Katrina. SITA will most likely be

a. rendered invalid under the supremacy clause.
b. rendered valid the equal protection clause.
c. struck down under the taxing and spending clause.
d. upheld under the commerce clause.
c. struck down under the taxing and spending clause.
The Tourist Travelers Association wants the federal government to spend money to build a new highway. Congress can spend revenues

a. only to carry out its enumerated powers.
b. to promote any objective that it deems worthwhile.
c. as long as the funds are spent uniformly among the states.
d. without regard to whether the expense violates the Constitution.
b. to promote any objective that it deems worthwhile.
Colorado enacts a statute that bans the distribution of anonymous political leaflets. A court would likely hold this to be
a. an unconstitutional restriction of speech.
b. constitutional under the First Amendment.
c. justified by the need to protect individual rights.
d. necessary to protect state interests.
a. an unconstitutional restriction of speech.
Energy Corporation regularly expresses opinions on political issues. Under the First Amendment, corporate political speech is given

a. little protection.
b. no protection.
c. significant protection.
d. total protection.
c. significant protection.
Iowa enacts a law that restricts certain kinds of advertising to protect consumers from being misled. This law would likely be held by a court to be

a. an unconstitutional restriction of speech.
b. constitutional under the First Amendment.
c. justified by the need to protect individual rights.
d. necessary to protect state interests.
b. constitutional under the First Amendment.
Adult Shoppe in Beach City sells a variety of publications, including child pornography. Beach City enacts an ordinance prohibiting the sale of such materials. This ordinance is most likely

a. an invalid restriction of individuals' privacy.
b. an unconstitutional restriction of speech.
c. a violation of adults' rights to enjoy certain privileges and immunities.
d. constitutional under the First Amendment.
d. constitutional under the First Amendment.
Brad stands in front of Rustler's Round-Up Café, shouting "fighting words" that are likely to incite Rustler's patrons to respond violently. The First Amendment protects such speech

a. all of the time.
b. none of the time.
c. only if it is noncommercial.
d. only if it is symbolic.
b. none of the time.
Justice For All, a political organization, files a claim to challenge a Colorado statute that limits the liberty of all persons to broadcast "annoying" radio commercials. This claim is most likely based on the right to

a. equal protection of the law.
b. privacy.
c. procedural due process.
d. substantive due process.
d. substantive due process.
Harbor Town enacts an ordinance to allow only a few street vendors to operate in certain areas, for the purpose of reducing traffic. A court would likely review this ordinance under the principles of

a. the commerce clause.
b. the equal protection clause.
c. the due process clause.
d. the First Amendment.
b. the equal protection clause.
Viola assures Wendell that she will deliver a truckload of pine seedlings to his tree farm. A person's manifestation of an intent to act in a specified way is part of the definition of

a. an expectation.
b. a moral obligation.
c. an ethical principle.
d. a promise.
d. a promise.
Jack promises to buy Kelly's computer for $400. Jack is

a. an executor.
b. an offeree.
c. a promisee.
d. a promisor.
d. a promisor.
Lilith promises to buy Marv's handheld game-player for $75. Marv is
a. an executee.
b. an offeror.
c. a promisee.
d. a promisor.
c. a promisee.
Cameron enters a coffee shop in which she has an open account, fills a cup of coffee, holds it so the cashier can see it, acknowledges the cashier's nod, and walks out with the coffee, knowing that she will be billed for it at the end of the month. Cameron has formed

a. an express contract.
b. an implied contract.
c. no contract.
d. a quasi contract.
b. an implied contract.
Following negotiations with Lester's Landscaping for maintenance services for a lawn and garden, Moore enters into an informal contract. This means that the parties' contract

a. requires no special form.
b. is not enforceable.
c. is not a true contract.
d. is voidable.
a. requires no special form.
Cole drives into Dino's Service Station and asks Erin, the attendant, to fill the tank in Cole's sport utility vehicle. After Erin fills the tank, but before Cole pays for the gas, any contract between Cole and Dino's is

a. executed.
b. executory.
c. quasi.
d. unenforceable.
b. executory.
Vernon claims that his contract with Ulani for catering services is voidable. If their contract is avoided

a. both parties are released from it.
b. both parties must fully perform their obligations under it.
c. a wholly different contract is agreed to.
d. a wholly different contract is imposed "as if" the parties had agreed.
a. both parties are released from it.
Debit & Credit Accounting Services and Brickwork Construction Company negotiate a contract. If it has all of the elements necessary for one of the parties to enforce it in court, it is

a. a valid contract.
b. a voidable contract.
c. a void contract.
d. an unenforceable contract.
a. a valid contract.
Dot, a real estate agent, tells Elbert, a home seller, that her commission is 12 percent. Elbert agrees that Dot can sell his house but refuses to sign a contract unless the amount of the commission is reduced. After Dot sells the house, Elbert refuses to pay 12 percent. Dot is most likely to recover

a. nothing.
b. on a theory of an express contract.
c. on a theory of an implied contract.
d. on a theory of a quasi contract.
d. on a theory of a quasi contract.
Courtney promises to buy illegal digital copies of music and movies from Devin, who promises to deliver on August 15. These promises are most likely

a. enforceable.
b. valid.
c. void.
d. voidable.
c. void.
Fresh Air Filter & Purification Company and Big Box Commercial Storage Company enter into a long-term lease for a warehouse. To be enforceable, the lease must be in writing if the amount of the rent payment is

a. more than $500.
b. more than $5,000.
c. more than $50,000.
d. any price.
d. any price.
Eustace and Durango Oil Company enter into an oral contract under which Eustace agrees to work on a Durango oil rig for not less than six months. This contract is enforceable by

a. Eustace.
b. Durango.
c. any interested third party, such as a member of Eustace's family.
d. none of the choices.
d. none of the choices.
Isaac and Holiday Fruit Company enter into an oral contract under which Isaac agrees to provide delivery service for holiday Fruit for nine months. This contract is enforceable by

a. Isaac.
b. Holiday Fruit.
c. any interested third party, such as a Holiday Fruit customer.
d. none of the choices.
d. none of the choices.
Lena buys a used MP3 player for $50 and a new laptop for $1,500, and signs a one-year employment contract for a $4,500 monthly salary to start at the beginning of the next month. The Statute of Frauds covers

a. the employment contract, and the laptop and MP3 purchases.
b. the employment contract and the laptop purchase only.
c. the employment contract only.
d. the laptop and MP3 purchases only.
b. the employment contract and the laptop purchase only.
Gia orally promises Heck that she will buy his fishing trawler. For this promise to be enforceable under the doctrine of promissory estoppel

a. the trawler must be considered a customized good.
b. Heck must act in reliance on Gia's promise to his detriment.
c. Gia's promise must be in writing.
d. the parties must stop promising until the deal is transacted.
b. Heck must act in reliance on Gia's promise to his detriment.
Trey and Unice orally agree on the sale of Trey's Health Club to Unice and note the terms on a sheet of the club's stationery, which Trey signs. This agreement is most likely enforceable against

a. neither Trey nor Unice.
b. Trey and Unice.
c. Trey.
d. Unice.
c. Trey.
Nutrition Services, LLC, and Oneida's Catering & Café Supply Company sign a written contract that does not involve a sale of goods. To be enforceable, the writing must include

a. a correct title, such as "Service Contract."
b. all essential and non-essential terms.
c. a statement of the consideration.
d. a description of the parties' businesses.
c. a statement of the consideration.
Vidal files a suit against Spectator Sports World, Inc., to enforce a contract. The only written evidence of the contract is a memo on Spectator's letterhead signed by a company officer. The contract can be enforced if the memo includes

a. a correct title, such as "Vidal-Spectator Contract."
b. the name and title of the person who signed the memo.
c. all essential terms.
d. a reference to the source of the funds for payment.
c. all essential terms.
Ramon contracts in writing to sell his Little Shop of Bagels to Suni. When Suni discovers that the kitchen equipment has been removed, she files a suit against Ramon. The court decides that the written contract includes everything that the parties intended. An agreement about the kitchen equipment may be admissible if it is

a. a previous agreement.
b. not otherwise contained in the parties' contract.
c. a subsequent modification of the parties' contract.
d. under no circumstances.
c. a subsequent modification of the parties' contract.
Sid induces Ty to enter into a contract for the sale of a warehouse about which Sid fraudulently misrepresents a number of material facts. Sid also tells Ty that his commission is 6 percent, but their signed, written contract states "12 percent." The parol evidence rule governs

a. contracts that are induced by fraud.
b. contracts that must be in writing to be enforceable.
c. the admissibility in court of oral evidence.
d. the reformation of oral and written statements into one contract.
c. the admissibility in court of oral evidence.
Odell and Pete sign a contract for the sale of Odell's Pizza Parlor to Pete. The parties intend their written contract to be a final statement of most, but not all, of the terms of their agreement⎯Odell must first buy the building from Quin, after which Odell and Pete will negotiate a final price.

Refer to Fact Pattern 15-1B. The writing that Odell and Pete signed is

a. a completely integrated contract.
b. a conditionally integrated contract.
c. a partially integrated contract.
d. a supplementally integrated contract.
c. a partially integrated contract.
Bret and Cory enter into a contract for the sale of Bret's textbook at the end of the fall semester for which Cory agrees to pay Bret $60. Cory wants to transfer her right to payment for the book to Del. This transfer

a. is prohibited.
b. may be oral or written.
c. must be implied.
d. must be in writing.
b. may be oral or written.
A contract between Drill-Bit Sharpeners, Inc., and East Oil Mining Corporation contains a clause stating that any assignment is "void." This ordinarily prohibits

a. any assignment.
b. no assignment.
c. only an assignment of contract rights to personal services.
d. only an assignment that would change the obligor's risk.
a. any assignment.
Jocasta contracts to provide lawn-mowing services to Kevin for $140 per month. Jocasta cannot transfer this duty

a. under any circumstances.
b. without continuing to be potentially liable.
c. without Kevin's consent.
d. without paying Kevin at least one monthly fee.
b. without continuing to be potentially liable.
Fiorella and Midwest Agri-Ship, Inc., enter into a contract for Midwest to transport a silo of corn for which Fiorella agrees to pay Midwest. Due to schedule conflicts, Midwest contacts Hybrid Crop Transport Company, to which Midwest "assigns all rights under the contract." This transfer is

a. an assignment and a delegation.
b. an alienation and a negotiation.
c. an obligation and a cancelation.
d. prohibited.
a. an assignment and a delegation.
Betty assigns her right to payment of a loan to Cody. Cody is

a. a creditor beneficiary.
b. a debtor beneficiary.
c. a donee beneficiary.
d. a donor beneficiary.
a. a creditor beneficiary.
Bayside Construction Company enters into a contract with Clio to remodel Dewey's Home Store, using products from Eagle Building Supplies. Fresh Food Café is next to Dewey's Home Store.

Dewey is
a. a delegatee.
b. an assignee.
c. an incidental beneficiary.
d. an intended beneficiary.
d. an intended beneficiary.
Refer to Fact Pattern 16-1B. The value of Fresh Food's property will increase after Dewey's store is remodeled. Fresh Food is

a. a delegatee.
b. an assignee.
c. an incidental beneficiary.
d. an intended beneficiary.
c. an incidental beneficiary.
Jen is a third party beneficiary under a contract between Kyla and Leo. Kyla and Leo can modify or rescind their contract without Jen's consent

a. at any time.
b. at no time.
c. after Jen's rights have vested.
d. before Jen's rights have vested.
d. before Jen's rights have vested.
Ron makes a contract with Stu that indirectly benefits Tim, although neither Ron nor Stu intended that result. Tim is

a. a delegatee.
b. an assignee.
c. an incidental beneficiary.
d. none of the choices.
c. an incidental beneficiary.
Jack, a minor, takes out an automobile insurance policy and pays a $1,000 premium. If Jack disaffirms the contract, he can most likely recover

a. $500.
b. $1,000.
c. $1,500.
d. nothing.
b. $1,000.
While a minor, Jason buys a large-screen HD TV and home theatre system that he continues to use after reaching the age of majority. After a reasonable time has passed, Jason will be considered to have

a. disaffirmed the contract.
b. ratified the contract.
c. rejected the contract.
d. rescinded the contract.
b. ratified the contract.
Solana, a minor, enters into a contract to buy a dozen movies from eHD TV Stream, Inc., an Internet video service. Solana reaches the age of majority and does not disaffirm the contract nor make payment on it. eHD files a suit against her. The court will most likely consider the contract ratified if it is

a. executed.
b. executory.
c. express.
d. emancipated.
a. executed.
Intoxicated, Clio agrees to sell her restaurant, Diners Café, to Evan for half of its real market value. This deal is most likely voidable if Clio

a. appears intoxicated to Evan.
b. disaffirms the contract after becoming sober.
c. is so intoxicated as to have no memory of the deal.
d. is so intoxicated as to lack comprehension of the legal consequences.
d. is so intoxicated as to lack comprehension of the legal consequences.
A court adjudicates Huck mentally incompetent and appoints Inez to be his guardian. Later, without Inez's knowledge, Huck signs a contract to sell his farm to Galen for its real market value. The contract is

a. enforceable if Huck comprehended the consequences.
b. enforceable if Huck knew the market value of the farm.
c. enforceable if Huck was the record owner of the farm.
d. void.
d. void.
Bree is a real estate broker licensed only in Minnesota. She concludes a sale in North Dakota on O'Reilly's behalf. Bree's contract with O'Reilly to be paid a certain commission for the sale is

a. enforceable if O'Reilly comprehended the consequences.
b. enforceable if O'Reilly knew Bree was not licensed in North Dakota.
c. enforceable if the amount of her commission is reasonable.
d. unenforceable.
d. unenforceable.
U-Can-Own-It Corporation sells appliances to less educated consumers, including Viv, on installment plans. U-Can-Own-It files a suit against Viv when she stops making payments. Viv claims that the deal is unconscionable. The court will most likely consider

a. the geographic area of the relevant market.
b. the parties' relative bargaining power.
c. the quality of related products in the general market.
d. the relation of this deal to those of other customers'.
b. the parties' relative bargaining power.
A deal between Lou and Mike requires a transfer of stolen body building equipment for counterfeit currency that Mike will attempt to spend at Now! Discount Mart. This contract is

a. enforceable.
b. void.
c. voidable at the option of Lou or Mike.
d. voidable at the option of Now!
b. void.
Rowan, a famous chef, sells to Patricia a restaurant that Rowan closed years ago. Patricia discovers in the restaurant a collection of Rowan's recipes, which are considered valuable. In a suit to obtain the recipes, Rowan will likely

a. lose because he should have known the recipes were in the restaurant.
b. lose because the sale of a restaurant includes everything in it.
c. win because there was no voluntary consent to the sale of the recipes.
d. win because the sale of a restaurant includes nothing in it.
c. win because there was no voluntary consent to the sale of the recipes.
Gert contracts to sell two tracts of land to Hank. Both parties believe that the two tracts are adjacent, but in fact they are not. Gert is still willing to sell the land, but under these circumstances the deal would adversely affect Hank.

The parties' belief about the adjacency of the property is

a. a bilateral mistake.
b. a fraudulent misrepresentation.
c. a unilateral mistake.
d. unconscionable.
a. a bilateral mistake.
Urban City and Thru-way Construction Company enter into a contract that includes calculations. Urban, whose engineer, Sergei, compiled the figures, discovers later that some numbers were added incorrectly, but Thru-way refuses to make changes. Urban can

a. not rescind the contract.
b. rescind the contract on the basis of fraud.
c. rescind the contract on the basis of mistake.
d. rescind the contract on the basis of economic duress.
c. rescind the contract on the basis of mistake.
Lew believes an old comic book he owns has little value, but Murray is convinced it is a valuable collector's item. Lew sells it to Murray for $10 before learning it is worth $1,000. Lew can

a. not rescind the contract.
b. rescind the contract on the basis of fraud.
c. rescind the contract on the basis of mistake.
d. rescind the contract on the basis of puffery.
a. not rescind the contract.
Genie.com initiates an online dating service. To attract subscribers and encourage participation, Genie.com creates and posts profiles of fictitious persons and exaggerated profiles of actual users. Fooled by the false profiles, Ham buys a subscription. He is most likely a victim of

a. undue influence.
b. fraud.
c. mistake.
d. nothing.
b. fraud.
Cooper offers to sell Gable his sport utility vehicle (SUV) and says that it has never been in an accident. Relying on Cooper's statement, Gable buys the SUV. Later, when it develops mechanical problems, Gable can

a. not rescind the contract.
b. rescind the contract on the basis of fraud.
c. rescind the contract on the basis of mistake.
d. rescind the contract on the basis of puffery.
b. rescind the contract on the basis of fraud.
Kurt persuades Leo to buy his bicycle by telling Leo that the bike rides "like the wind." Kurt's statement is

a. duress.
b. fraud.
c. puffery.
d. undue influence.
c. puffery.
Roc buys a farm from Steve, who claims that it would be a prime site for a housing subdivision. Roc later learns that the law does not permit the land to be used for housing. Roc may

a. not rescind the contract.
b. rescind the contract only if Roc did not know the law before the deal.
c. rescind the contract only if Steve knew about the law before the deal.
d. rescind the contract only if the law is not common knowledge.
a. not rescind the contract.
Flem sells an all-terrain, off-road vehicle to Esteban without disclosing that the odometer, which reads 30,000 miles, was disconnected 50,000 miles ago. Flem is most likely liable for

a. duress.
b. fraud.
c. mistake.
d. nothing.
b. fraud.
In selling a house, Robin tells Destry that the wiring and plumbing are of a certain quality. Robin knows nothing about the quality, but it is not as she specifies. Destry buys the house.

Under these circumstances, Destry's best course of action is most likely to

a. scam Robin.
b. induce Robin to give him the commission on her next sale.
c. recover damages or rescind the contract to buy the house.
d. sabotage Robin's career with bad publicity.
c. recover damages or rescind the contract to buy the house.
Safron threatens physical harm⎯"you don't want anything to happen to you or your family"⎯to force Tivoli to sell his business, Umbrellas Unlimited, Inc., to Safron for a below-market price. This is

a. a mistake of value.
b. duress.
c. fraud.
d. undue influence.
b. duress.
Pete, the owner of Quality Orchards, contracts to sell fruit to Ripe Produce, Inc. When Pete refuses to perform, Ripe Produce files a suit to enforce the contract.


If Pete and Ripe Produce are in a state that does not recognize the doctrine of unconscionability, to defend successfully against enforcement of the contract on similar grounds, Pete might rely on traditional notions of

a. fraud.
b. materiality.
c. mistake.
d. unconscionability.
a. fraud.
Consumer Sales, Inc. (CSI), sends its catalogue to Dean and includes a "personalized" letter inviting him to buy any item in the catalogue at the advertised price. This is

a. an offer because of the "personalized" letter.
b. an offer because there is no room for price negotiation.
c. an offer only if Dean previously bought items from CSI.
d. not an offer.
d. not an offer.
Brick Products, Inc., files a suit against City Trucking Service for breach of contract, based on what Brick claims was City's offer. For a court to determine if a contract has been breached, under the common law, the offer must include terms that are

a. exactly precise.
b. reasonably definite.
c. unequivocally approximate.
d. vague or uncertain.
b. reasonably definite.
Quick Transport, Inc., offers to sell a truckload of palettes to Rapid Delivery Company. Before accepting the offer, Rapid learns that the palettes have been sold to Speedy Trucking Corporation. Quick is

a. liable to Rapid for breach of contract.
b. liable to Speedy for breach of contract.
c. not liable, because the sale revoked the offer to Rapid.
d.bnot liable, if Quick offers substitute goods to Rapid.
c. not liable, because the sale revoked the offer to Rapid.
State Bank offers to lend money to Rodeo Promotions, Inc., at 15 percent interest. Before Rodeo accepts, a statute is enacted prohibiting loans at interest rates greater than 12 percent. Rodeo and the bank have

a. have a contract for a loan at 15 percent interest.
b. have a contract for a loan at 12 percent interest.
c. have a contract for a loan at 0 percent interest.
d. no contract for a loan.
d. no contract for a loan.
Overnight Delivery Service delivers a package to Pam. At the request of Overnight's delivery person, to acknowledge receipt Pam signs a digital pad. This signing creates

a. a cybernotarized signature.
b. a digitized handwritten signature.
c. an asymmetric cryptosystemic signature.
d. a public-key infrastructure digital signature.
b. a digitized handwritten signature.
Global Shipping Corporation enters into contracts with distributors and other buyers in e-commerce and in traditional commerce. The UETA applies, if at all, only to those transactions in which the parties agree to use

a. electronic means.
b. paper documents.
c. updates and cross-checks to orally verify any e-terms.
d. notarized documents.
a. electronic means.
Shelby offers to make digital copies of Relay Company's business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule and the Uniform Electronic Transactions Act (UETA), Relay's acceptance by e-mail will be considered effective when

a. received.
b. sent.
c. followed up by a confirmation letter sent by regular mail.
d. composed on a Relay computer.
b. sent.
Consumer Payments Processing Corporation (CPPC) and Mall Kiosk Company make a deal for CPPC's services, via e-records. Under the UETA, an e-record is considered received when

a. it enters the recipient's processing system in a readable form.
b. the recipient is aware of its receipt.
c. the recipient is aware that it has been sent.
d. it leaves the sender's control.
d. it leaves the sender's control.
On behalf of Bay Oyster Company, Celia types her name at the bottom of an e-mail purchase order and submits the order to Deepwater Parts Company. Under the UETA, Celia's typed name qualifies as

a. her "signature."
b. a cybernotary.
c. a partnering agreement.
d. nothing.
a. her "signature."
Office Application Corporation (OAC) sends an e-record to Precision Design, Inc. Under the UETA, the record will be considered received when

a. it enters Precision's processing system in a readable form.
b. a Precision representative is aware of its receipt.
c. it is midway between the parties' processing systems.
d. passes out of OAC's control even if it is not in a readable form.
a. it enters Precision's processing system in a readable form.
Rollo promises to perform, for a price, shoe repair services in affiliation with Togs 'n Things, a clothing store. To support a contract, the consideration exchanged by the parties must be

a. adequately considerate.
b. equally valuable.
c. legally sufficient.
d. wisely priced.
c. legally sufficient.
Braxton questions whether there is consideration for his contract with Tawny to exchange his accounting services for her payment of a certain amount. To constitute consideration, there must be

a. a payment of money.
b. a performance of services.
c. a bargained-for exchange.
d. detrimental reliance.
c. a bargained-for exchange.
Sonic Board Corporation files a suit against Custom Fabricators Company, claiming that the consideration for their contract is inadequate. The court will most likely not examine the adequacy of the consideration if

a. there is a large disparity in the amount of consideration exchanged.
b. Sonic asserts that there is inadequate consideration.
c. something of value passed between the parties.
d. the consideration is worth less than $100.
c. something of value passed between the parties.
Sal contracts with Tasty Pizza Company to deliver its products. Both parties change their minds, however, and inform each other that they would like to cancel the contract.

The next day, Sal changes her mind and again offers to deliver Tasty's products. Tasty is willing to deal, but for a new price. Sal and Tasty

a. may agree to a new contract, but it cannot include a new price.
b. may agree to a new contract that includes the new price.
c. must perform their original contract.
d. must perform the part of their original contract that is executory.
b. may agree to a new contract that includes the new price.
Sal contracts with Tasty Pizza Company to deliver its products. Both parties change their minds, however, and inform each other that they would like to cancel the contract.

Sal and Tasty:
a. may rescind their entire contract.
b. may rescind their contract to the extent that it is executory.
c. must perform their entire contract.
d. must perform the part of their contract that is executory.
b. may rescind their contract to the extent that it is executory.
Suki works for Renaldo. At the end of her first year, Renaldo promises to pay her a bonus for her "four quarters of success." Renaldo's promise is

a. unenforceable because Suki's performance was a preexisting duty.
b. unenforceable because Suki's performance is past.
c. enforceable.
d. unenforceable because Suki's performance is not legally sufficient.
b. unenforceable because Suki's performance is past.
Speedy Assembly Company promises its employees a 10-percent raise at the end of the year if productivity has increased and management feels it is warranted. Speedy must

a. do nothing.
b. give the employees a 10-percent raise only at the end of the year.
c. give the employees a 10-percent raise only if productivity increases.
d. give the employees a 10-percent raise under any circumstances.
a. do nothing.
Mei writes a check to Nat in an amount that represents half of her debt to him. On the back of the check, Mei includes the words "payment in full." Nat cashes the check. This discharges the entire debt

a. if the debt is liquidated.
b. if the debt is past due.
c. if the debt is unliquidated.
d. under no circumstances.
c. if the debt is unliquidated.
In a skateboarding accident with Ryan, Starla is injured. Ryan's insurance company's offers her $25,000 to release him from liability, and she accepts. Later, she learns that her injuries are more serious than she realized. The release

a. bars Starla's further recovery from Ryan.
b. is unenforceable because Starla's injuries are unforeseeably difficult.
c. is unenforceable because Ryan has a preexisting duty to pay.
d. is unenforceable because the release is an illusory promise.
a. bars Starla's further recovery from Ryan.
Quinn promises to sell his recreational vehicle (RV) to Sid, who builds a structure behind his house in which to keep it. Quinn's later attempt to renege on the promise is

a. effective if Quinn did not ask Sid to build anything.
b. effective if Quinn wants to sell the RV to someone else.
c. not effective if Sid cannot obtain a similar RV for a similar price.
d. not effective if Sid detrimentally relied on Quinn's promise.
d. not effective if Sid detrimentally relied on Quinn's promise.
What are the 4 Primary sources of American law?
1. Constitutional Law
2. Statutory Law
3. Administrative Law
4. Case law and common law doctrines
What is Statutory Law?
Laws enacted by legislative bodies at any level of goverment. These laws passed by congress or state legislatures make up the body of law referred to as statutory law.
What is Administrative law?
Consists of the rules, orders and decisions of the administrative agencies. Administrative agencies are federal, state, or local government agencies established to perform a specific function.
What is Case Law?
The rules of law announced in court decisions. These rules include interpretations of constitutional provisions, of statutes enacted by legislatures and of regulations created by administrative agencies.
What are remedies?
The legal means to enforce a right or redress a wrong
What are remedies of equity? And what are the 3 types it includes?
Remedies granted by the equity of courts.

These include:
Specific performance - Ordering a party to perform an agreement as promised
-Injunction - Ordering a party to cease engaging in a specific activity or to undo some wrong or injury
-Recession - The cancellation of a contractual obligation
What type of common law is known as "Judge-Made" Law?
Stare Decisis
Under the Stare Decisis doctrine, judges are obligated to follow the precedents established within their _______________
Jurisdictions. (geographic area in which courts have the power to apply the law.
What are the two aspects of stare decisis?
1. The decisions made by a higher court are binding on lower courts (in the same jurisdiction)

2. A court should not overturn its own precedents unless there is a compelling reason to do so.
What are the three common forms of legal reasoning?
1. Deductive Reasoning
2. Linear Reasoning
3. Reasoning by Analogy
What is deductive reasoning?
Sometimes called syllogistic reasoning because it employs a syllogism - a logical relationship involving a major premise, a minor premise, and a conclusion.
What is linear reasoning?
Proceeds from one point to another with the final point being the conclusion. Think of a knotted rope
What is reasoning by analogy?
Comparing the facts in the case at hand to the facts in previous cases and to the extent that the patterns are similar, to apply the same rule of law to the present case.
Common law only governs areas not covered by: ______________ and __________ law
Statutory and administrative
What are the 4 schools of Jurisprudential Thought?
1. Natural Law School
2. Positivist School
3. Historical School
4. Legal Realism
What is the Natural Law School?
Those who believe in natural law hold that there is a universal law applicable to all human beings. Also of higher order than positive (national) law
What is the positivist school of thought?
centered on the assumption that there is no law higher than the law created by the government. Laws must be obeyed even if they are unjust to prevent anarchy
What is the historical school of thought?
stresses the evolutionary nature of law and looks to doctrines that have withstood the passage of time in guidance in shaping present laws.
What is the legal realism school of thought?
Views based on the idea that law is just one of many institutions in society and that it is shaped by social forces and needs. Judges should take social and economic realities into account when deciding cases.
What is the supremacy clause provide?
That the Constitution, laws and treaties of the US are the "supreme law of the eland". When there is a direct conflict between a federal law and a state law the state law is rendered invalid.
What are the two ways Congress can spend revenues?
1. To carry out its expressed powers
2. Promote any objective it deems worthwhile, so long as it does not violate the Bill of Rights.
What 3 types of speech are not protected by the first amendment?
1. Speech that violates criminal laws (threatening speech and pornography)
2. Fighting words (speech that is likely to incite others to respond violently)
3. Speech that harms the good reputation of another (defamatory speech)
What are the two aspects of due process?
1. Procedural
2. Substantive
What is procedural due process
ensures fundamental fairness in all legal and administrative proceedings. It protects the individual's rights by placing restrictions and requirements on how a government may proceed in an action to deprive him of any right. A person is entitled to notice, and an opportunity to present his case, before the government may take any action that adversely affects a right.
What is substantive due process?
Protects substantive rights of individuals -- including those in the Bill of Rights -- by requiring the government to afford an individual due process before depriving her of a fundamental right, such as the freedom of speech, free exercise of religion and the right to privacy. Substantive due process requires the courts to determine if a law is unreasonable when it affects a fundamental right.

Laws that restrict or deprive a person of a substantive rights must serve a compelling government interest, such as public health and safety and prevention of crime.
What are the 4 requirements of a valid contract?
1. Agreement
2. Consideration
3. Contractual Capacity
4. Legality
What is a bilateral contract?
A promise for a promise
What is a unilateral contract?
A promise for an act
What is a formal contract
Requires a special form for creation
What is an informal contract
Requires no special form for creation
What is an express contract?
A contract formed by worlds
What is an implied contract?
A contract formed by the conduct of the parties
A contract that has been fully performed on both sides is called an:
Executed contract
A contract that has not been fully performed by the parties is called an
executory contract
A _________ contract is a valid contract but one that can be avoided at the option of one or both of the parties
Voidable Contract
A _________ contract is one that cannot be enforced because of certain legal defenses against it.
Unenforceable contract
What are Quasi contracts?
not true contracts because they do not arise from any agreement between the parties themselves. Quasi contracts are fictional contracts that the courts can impose on the parties "as if" the parties had entered into an actual contract.
What is an offer?
a promise or commitment to do or refrain from doing some specified action in the future.
What are the 3 elements that are necessary for an offer to be effective?
1. The offeror must have a serious intention to become bound by the offer
2. The terms of the offer must be reasonably certain or definite, so that the parties and the court can ascertain the terms of the contract
3. The offer must be communicated to the offeree
What is serious intent determined by? (in relations to an offer)
It is determined by what a reasonable person in the offeree's position would conclude that the offeror's words and actions meant.
An offer must have __________ definite terms so that a court can determine if a breach has occurred and give an appropriate remedy.
reasonably
What are the 4 terms a contract must include to help a court determine if they are reasonably definite?
1. Identification of the parties
2. Identification of the object or subject matter of the contract. Including the work to be performed, with specific identification of such items as goods, services, and land.
3. The consideration to be paid
4. The time of payment, delivery or performance
What is the UETA?
The Uniform Electronic Transactions Act - Only applies when parties have agreed to conduct transactions electronically.
What are the two parts of consideration?
1. Something of legally sufficient value must be given in exchange for the promise
2. Usually, there must be a bargained-for exchange
Promises made in return for actions or events that have already taken place are unenforceable. These promises lack which element of consideration?
The Bargained-for exchange. You can bargain for something to take place now or in the future, but not for something that has already taken place.
A promise is illusory - without consideration and unenforceable when...
it fails to bind the promisor.
What is it called when a debtor offers to pay, and a creditor accepts, a lesser amount than the creditor originally claimed was owed.
Accord and satisfaction
For accord and satisfaction to occur, the amount of debt must be
in dispute
What is a liquidated debt?
One whose amount has been ascertained, fixed, agreed on, settled or exactly determined.
If a debt is _______________, accord and satisfaction cannot take place
liquidated
Unliquidated debt is where the amount of debt is...
not settled, fixed, agreed on, ascertained, or determined and reasonable persons may differ over the amount owed.
What is a contract in which one party forfeits the right to pursue a legal claim against the other party?
A release
Releases will generally be binding if they are...(3 things)
1. Given in good faith
2. Stated in a signed writing (which is required in many states)
3. Accompanied by consideration
What are the 3 exceptions to the consideration requirement?
1. Promises that induce detrimental reliance, under the doctrine of promissory estoppel
2. Promises to pay debts that are barred by a statute of limitations
3. Promises to make charitable contributions
under the doctrine of ______________ ________________, a person who has reasonably and substantially relied on the promise of another may be able to obtain some measure of recovery.
Promissory estoppel
What is disaffirmance ?
The legal avoidance, or setting aside, of a contractual obligation. A minor must express his or her intent to not be bound by the contract. they also must disaffirm the entire contract.
___________ if the act of accepting and giving legal force to an obligation that previously was not enforceable.
Ratification - example would be a minor becoming of age.
What are the two types of mistakes the court will recognize?
1. Mistakes of Fact
2. Mistakes of Value or Quality
Only Mistakes of __________ makes the contract voidable
Fact
What are the two types of mistakes of fact?
1. Bilaterial - mistake made by both parties
2. Unilateral - mistake made by only one of the parties
True or False…Usually a unilateral mistake affords the mistaken party the right to relief from contract
False
If a mistake concerns the future market value or quality of the object of the contract, the mistake is one of value and the contract normally is ___________.
enforceable
What are the two exceptions to the general unilateral mistakes of fact rule?
1. If the other party should have known that a mistake of fact was made. (ex: selling a car for 120,000, accidentally writes 12,000)
2. When the mistake of fact was due to a mathematical mistake and made inadvertently and without gross negligence.
What are the three elements of fraudulent misrepresentation?
1. A misrepresentation of a material fact must occur
2. There must be an intent to deceive
3. The innocent party must justifiably rely on the misrepresentation
What is innocent misrepresentation?
When a person makes a statement that she or he believes to be true but that actually misrepresents material facts. These contracts can usually be rescinded but the aggrieved party usually can't seek damages
What arises from special kinds of relationships in which one party can greatly influence another party and overcome their free will?
Undue Influence
If it is said that a contract falls under the Statute of Frauds, what does that mean?
It is required to be in writing or evidenced by a written memorandum or record.
What are the 5 types of contracts that fall under the Statute of Frauds?
1. Contracts involving interests in land
2. Contracts that cannot be performed within one year from the day of formation
3. Collateral or secondary contracts, such as promises to answer for the debt or duty of another
4. Promises made in the consideration of marriage
5. Under UCC, contracts for the sale of goods priced at $500 or more.
What is the "One Year Rule"?
Contracts that cannot, by their own terms, be performed within one year from the day after the contract is formed must be in writing to be enforcable.
Under the Statute of Frauds, when can an oral contract be considered enforceable?
When the promisee justifiably relies to his or her detriment on a promise made by the promisor.
What is Parole evidence?
Oral Evidence
Under the Parol Evidence Rule, if a court finds that the parties intended their written contract to be a complete and final statement of their agreement, then it will,
NOT allow either party to present parol evidence (testimony or other evidence of communications between the parties that are not contained in the contract itself)
What are the 7 exceptions to the Parol Evidence Rule?
1. Contracts subsequently modified
2. Voidable or void contracts
3. Contracts containing ambiguous terms
4. Incomplete Contracts
5. Prior dealing, course or performance or usage of trade.
6. Contracts subject to an orally agreed-on condition precedent
7. Contracts with an obvious or gross clerical error.
If a contract is itended to be a complete and final statement of the terms of the agreement, it is referred to as an _________________ contract and extraneous evidence is excluded.
Integrated
If a written contract is fully integrated, parol evidence is ______________.
Inadmissible - would not be admitted.
If a written contract is not fully integrated, parol evidence is ___________.
Admissible - may be admitted
True or false: Assignment or delegation of a contract can only be written.
False - Assignment or delegation can be oral or written. It is obviously easier to prove a contract in writing so it is more practical to write down contracts.
What are rights that cannot be assigned or delegated?
1. When a Statute Prohibits Assignment
2. When a Contract is Personal in Nature
3. When an Assignment will Significantly Change the Risk or Duties of the Obligor
4. When the Contract Prohibits Assignment
A _______________ beneficiary benefits from a contract in which one party (the promisor) promises another party (the promisee) to pay a debt that the promisee owes to a third party.
Creditor
An intended beneficiary is a third party:

1. To whom performance is rendered ________ and/or
2. Who has the right to control the __________ of ___________ or
3. Who is designated a ___________ in the contract
An intended beneficiary is a third party:

1. To whom performance is rendered directly and/or
2. Who has the right to control the details of performance or
3. Who is designated a beneficiary in the contract
An incidental beneficiary is a third party:

1. Who benefits from a contract but whose benefit was _____ the ____________ for the contract
2. Who has ___________ rights in the contract
An incidental beneficiary is a third party:

1. Who benefits from a contract but whose benefit was not the reason for the contract
2. Who has no rights in the contract
An intended third party beneficiary cannot enforce a contract against the original parties until the rights of the third party have _______.
Vested. Which means the rights have taken effect and cannot be taken away. Until these rights have vested, the original parties to the contract can modify or rescind the contract without consent of the third party.