Blaw Final 2

Front 1

A few states either by statute or court ruling recognize a duty on the part of a minor to make restitution to the seller upon disaffirmance of a contract

Back 1

True

Front 2

Michael, a minor, rents a car to attend the senior prom at his high school. He signs an agreement stating that he will not take the car more than 100 miles from the rental agency. At 2:00 a.m., after he has had a few beers, his friends talk him into driving 200 miles to Chicago for the weekend. On the way, the car is involved in a minor traffic accident that damages the vehicle. In most courts, because the tort of negligence is related to the rental contract for the vehicle, Michael has no liability to the rental agency.

Back 2

False

Front 3

Ratification of a contract, once effected, is final and can't be withdrawn

Back 3

True

Front 4

A mental illness or defect of one of the parties to a contract automatically makes a contract void

Back 4

False

Front 5

Mary, age 17, sold Mark, age 22, the briefcase she got for graduation. Mark's father liked it and bought it from him.If Mary decides to disaffirm the contract, will Mark's father have to return the briefcase to her?

Back 5

No if Marks father bought it without knowing that Mary was a minor

Front 6

Which of the following is not true regarding the contracts of intoxicated persons?

Back 6

slight intoxication will destroy ones contractual capacity

Front 7

A contract by which of the following is void?

Back 7

a thirty six year old man under a court ordered guardianship for mental incompetency

Front 8

disaffirmance for a minor can be done when?

Back 8

during minority and for a reasonable time after reaching majority

Front 9

When can ratification be done?

Back 9

upon reaching majority

Front 10

What are void and what are voidable?

Back 10

under gaurdianship - void

mental illness - voidable

intoxicated - voidable

minority - voidable

Front 11

an exculpatory clause attempts to excuse one from liability for her own tortious conduct

Back 11

True

Front 12

An agreement in connection with the sale of a business that prohibits the seller from engaging in the same or similar business for a period of 25 years would be unreasonable

Back 12

True

Front 13

Claudia sells her highly successful hair salon to carl. in the sales contract, claudia agrees to never open a hair salon in the state. which of the following best describes this contract clause?

Back 13

an unenforceable restraint of trade contrary to public policy

Front 14

Consideration can be present regardless of whether the parties intend an exchange.

Back 14

False

Front 15

In some states a promise under seal is binding without consideration.

Back 15

True

Front 16

Past actions unbargained for by the parties in an agreement can become valid consideration for a contract

Back 16

False

Front 17

In most, if not all, cases where there is a legal detriment to the promisee, there is also a legal benefit to the promisor

Back 17

True

Front 18

The parties to a contract may modify the agreement with no additional consideration by simply substituting a new contract

Back 18

True

Front 19

Contracts generally require adequacy of consideration where the consideration given by both parties is of fair value and equitable.

Back 19

False

Front 20

"Consideration" does not require an actual benefit to both sides of an agreement.

Back 20

True

Front 21

The performance of a pre-existing contractual duty which is neither doubtful nor the subject of an honest dispute is legally sufficient consideration to support a second contract.

Back 21

False

Front 22

A conditional promise is a promise the performance of which depends upon the happening or nonhappening of an event not certain to occur.

Back 22

True

Front 23

Consideration exchanged for a promise does not require both legal detriment to the promisee and legal benefit to the promisor.

Back 23

True

Front 24

A promise to pay $1,000 a year to a local police officer to not have your store vandalized is legally unenforceable under the rule that makes performance of a pre-existing legal obligation legally insufficient consideration.

Back 24

True

Front 25

D owes C a past-due undisputed debt of $500. D sees C in a bar and pays him $400. C then says to D, "Forget about the other $100 you owe me. I'm glad to get the $400." C's promise to discharge the remainder of the debt is binding.

Back 25

False

Front 26

The term "past consideration" is not really consideration at all because the law will not find a contract where there is no bargained-for-exchange.

Back 26

True

Front 27

Contracts binding without consideration include promises to pay debts barred by a statute of limitations and debts discharged in bankruptcy.

Back 27

True

Front 28

In most states, a contract under seal is binding without consideration.

Back 28

False

Front 29

Aunt Ellie promises her 21-year-old nephew, Robbie, that she will pay him $100 if he quits smoking for a month. If Robbie does, is there a binding contract?

Back 29

Yes because Robbie gave up a legal right

Front 30

Which of the following would most likely be enforceable to settle an undisputed debt?

Back 30

a substitute agreement to settle an undisputed debt

Front 31

Which of the following is enforceable without consideration?

Back 31

a new promise to pay a debt barred by the statue of limitations

Front 32

Nancy, who lives in Birdville, wants to open a McHenry Roast Chicken franchise. Mark, a representative of McHenry, told Nancy, "If you will buy a lot and build a building in River City, we will give you a franchise." Nancy bought the lot and built the building as instructed, only to discover that McHenry had awarded the franchise to a large corporation. McHenry claims no liability to Nancy since there was no consideration. Which statement is most accurate?

Back 32

McHenry is liable to Nancy based on the concept of promissory estoppel.

Front 33

Which of the following requires consideration in order to be binding upon the parties?

Back 33

material alteration of a personal service contract

Front 34

Which of the following situations will a smaller sun be unable to discharge a larger debt?

Back 34

if the smaller sum is paid when the larger sum would ordinarily be due but the debtor is on the verge of insolvency

Front 35

Consideration:

Back 35

may be given to the promiser or to some other person by the promisee or by some other person

Front 36

generally, whether or not the parties deal at arms length does not affect whether silence alone amounts to fraud

Back 36

False

Front 37

To obtain relief for negligent or innocent misrepresentation all the remaining elements of fraud must be present and the misrepresentation must be material

Back 37

True

Front 38

a collection agency threatened to sue Martha for the unpaid hospital bills from her heart operation. she signed a promissory note at a high but not illegal rate of interest. What result?

Back 38

the threat to bring a civil suit to collect money owed is permissible

Front 39

there is no necessity to distinguish language which constitutes an offer from which merely solicits or invites offers

Back 39

false

Front 40

the codes firm offer rules applies only to offers in writing that are made by merchant offeror

Back 40

True

Front 41

If Thomas seemingly offers to sell to Raquel his Toro lawnmower but he intends to offer and believes he is offering her his Murray mower, and she accepts the offer, reasonably believing it was for the Toro, no contract has been formed because there is no mutual assent.

Back 41

False

Front 42

An offer under Article 2 of the UCC that is irrevocable even though no consideration is given to keep it open is known as a(n):

Back 42

Firm offer