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51 Cards in this Set

  • Front
  • Back
An agreement may be found to be void due to illegality because
1. it requires the commission of a illegal act
2. is is made illegal by statue
3. it is contray to public policy
When one or both parties to an illegal bargain are ignorant of the facts that made the bargain illegal
Allow recovery for performance rendered before the parties learned of the illegality
A person who enters into an illegal contract may recover any consideration when
the party rescinds the contract before any illegal act has been performed
This law prohibits charging more than a stated amount of interest for the use of money
Usury law
Harold makes an oral agreement to pruchase Tina's boat for $700. Under the UCC
the agreement is barred by the statue of frauds
Oral contracts that come under the provisions of the statue of frads are
Unenforceable
When parties to an oral contract have both fully performed their obligations under the contract, the parties are
not allowed to rescind the contract
the equitable doctrine of _____
allows parties to recover under oral contracts which the statute of frauds would have ordinarily rendered unenforceable
Promissory estoppel
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
Fall outside the scope of the statute of frauds
Who among the following cannot enforce a contract
Incidental beneficiaries
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
Carl can recover from Brad under the assignment contract or quasi-contract theory
Does a assignment require consideration. True or False
False, it usually does not require consideration
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
in enforcable by either the promisor or the assignor
Rocky's duty to perform as a basketball player for a NBA team would be
Not Delegable
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
Constructice condition precedent
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
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
Personal service contracts are the only contracts which terminate with the promisor's death. True or False
True
An award for loss in value of a promised performance is
Compensatory
A Liquidated damages provision will be enforced only when
the amount specified is reasonable
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?
code provisions would not apply because Angela entered into a contract which was prodoinantly a service contract
Under Article 2 of the UCC Tec-E, a software company, contracts to sell a database program to a local NPO
is a merchant for the purposes of the contract in question

notes 19-5
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?
A contract was formed between Adam and Ben ever though the price term was omitted
Under the UC, if the contract is silent about the place for delivery, the goods are to be deliver:
At the seller's place of business
When a contract merely requires the seller to ship the goods, title passes to the buyer when:
the seller delivers the goods to the carrier
The statement regarding a product might be interpreted as either an opinion or an express warranty depending on
The relative knowledge of the parties involved
Fungible goods are
Mixed goods which are identical and cannot be separated (such as granin or coal)
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
3. if they are conspicuous(obovious)

pg 345 parag 2
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
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
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
1. negligence

notes 20-12
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:
ABC has waive its right to cancel the contract
if there is no agreement between the parties t delivery to happen in installments than all the goods
must be delivered to the buyer in a single delivery
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
3. paying for the goods without inspecting them
When goods are shipped COD
they buyer must pay for them before inspection them
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
3. that the buyer can reject an installment delivery even if the nonconformity can be corrected by the seller
The objective of providing remedies for breach of a sales contract is to
put the injured person in the same position as if the contract had peen performed
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
3. it does not allow for recovery of damages in case personal injury is caused
Under the UCC, a lawsuit for breach of a sales contract must be filed:
within 4 years after the breach occurs
When a warranty covers the future performance of goods, the breach occurs:
the moment the buyer discovers the defect in the product
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
4. complete the manufacturing of goods that are unique in nature
acceptance by a buyer is
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
Negligence
a person owes a duty of care to avoid foreseeable injury to others
if the seller is in the process of manufacturing the goods when the buyer breaches the contract the seller may do
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
disclaimers of warranty may be unconscionable due to
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
acceptance of a buyer are
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
These are true of liability for consequential damages
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
unconscionable
not guided or controlled by conscience
Consequential
of a nature of a secondary result
According to the Magnuson-moss Warranty Act and the FTC guidelines, when sellers give a written warrant, they must satisfy the following
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
Promissory estoppel
an equitable doctrine allowing parties to recover under oral contracts which the statute of frauds would have ordinarily rendered unenforceable
UCC states that contract of the sale of goods costing $500 or more are?
not enforceable without a writings or other specified evidence
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
4. it protects the interests created by the contract to a reasonable measure