Chapter 9

Front 1

Strawly Corp. runs an "adult bookstore" in Metro City, leasing the building from MegaCorp. Then, Metro City passes an ordinance prohibiting the sales of the types of merchandise found in "adult bookstores." Strawly is still bound to the contract. True or false?

Back 1

False

Front 2

Contracts for the sale of fabric, automobiles, computers, furniture, and paperclips would all be governed by article 2 of the Uniform Commercial Code. True or false?

Back 2

True

Front 3

On Monday, Mick puts an offer in the mail to Sheri to sell his guitar for $50. Monday night when jamming with his buddies, he decides he will really miss his old guitar and has second thoughts about selling it. Tuesday morning he puts a revocation in the mail informing Sheri he has changed his mind and the guitar is no longer for sale. The revocation is effective on Tuesday morning. True or false?

Back 3

False

Front 4

When promissory estoppels is used by the courts, it is because there is NOT an enforceable contract present. True or false?

Back 4

True

Front 5

A letter of intent summarizes progress made during business negotiations, but more importantly, it creates a binding contract. True or false?

Back 5

False

Front 6

Mr. Johnson has paid his neighbor's son Desmond $25 every week for 8 weeks to wash and wax his car. There was never any agreement as to how many weeks this would happen. On the 9th week, Mr. Johnson refused to pay Desmond claiming he never agreed to this deal. Desmond is out of lick, because Mr. Johnson is right. True or false?

Back 6

True

Front 7

The common law governs contracts for: A. Services. B. Real estate. C. Employment. D. All of the above.

Back 7

D. All of the above.

Front 8

When Myrtle comes home from work one evening, she finds that her yard has been mowed and trimmed. Later, a man comes to collect for the yard work done. Myrtle refuses to pay for the work since she has never seen the man before and did not hire him to do her yard work. Which of the following answers is most accurate? A. This is an implied, unilateral contract and she must pay the price requested by the man. Be. This is an express, voidable contract that either party may avoid. C. The court would order Myrtle to pay the reasonable value of the yard work because of the benefit conferred on her. D. Myrtle would not have to pay for the yard work.

Back 8

D. Myrtle would not have to pay for the yard work.

Front 9

Miles purchased a lawn mower with an attached warning that said, the manufacturer is not responsible in the case of an injury caused by the lawn mower. If miles is injured because of a defect in the mower and sues the lawn mower manufacturer, he will most likely: A. Lose, as he agreed to not hold the lawnmower manufacturer liable. B. Lose, as he assumed the risk. C. Win, as this warning would be unenforceable. D. When, as all lawnmower manufacturers are strictly liable.

Back 9

C. Win, as this warning would be unenforceable.

Front 10

What is not required to establish promissory estoppel? A. A promise made by the defendant. B. A promise made by the plaintiff in response to the defendant's promise. C. Reliance on the defendant's promise. D. Enforcing the promise is the only way to avoid injustice.

Back 10

B. A promise made by the plaintiff in response to the defendant's promise

Front 11

Shelly offers to sell Jane goods both parties no are stolen. Jane accepts the offer, and agrees to pay for the goods. Later, Jane refuses to accept or pay for the goods. If Shelly sues Jane for breach of contract, what is the probable result? A. The law would enforce this valid, enforceable contract. B. Jane would win as this is a voidable contract. C. Shelly would win as this is a unilateral contract. D. The law would not enforce Jane's promise, as it does not have a lawful purpose.

Back 11

D. The law would not enforce Jane's promise, as it does not have a lawful purpose.

Front 12

Robert, a minor, buys a stereo from Jane for $200. State law allows a minor to disaffirm contrast within a reasonable time after turning 18. Robert decipher the contract and day after turning 18 and returns the stereo. A. This contract was a valid contract, Robert cannot disaffirm. B. this contract was a voidable contract, Robert can disaffirm. C. This contract was a void contract. D. This contract was unenforceable because it needed to be in writing to be enforceable.

Back 12

B. This contract was a voidable contract, Robert can disaffirm.

Front 13

Patty is a poor college student struggling to work and keep up with her studies. Fred, or uncles, promises to pay Patty support of $200 per month for the next 6 months. Although Fred didn't ask her to, she quits her current job in order to devote full time to her studies for the next 6 months. Fred makes one payment and then stops with no explanation. If Patty sues, what is the likely result? A. Fred would win, as he did not ask patty to quit her job. B. Patty would win, as a contract was formed when Fred promised to pay her the support. C. Fred would win as filling members cannot sue each other for breach of an oral promise. D. Patty may win under the doctrine of promissory estoppel.

Back 13

D. Patty may win under the doctrine of promissory estoppel.

Front 14

Courts may award damages called "quantum meruit": A. Which means " as much as he deserved." B. Which is money the court believes the plaintiff morally ought to have. C. Even there was no valid contract entitling the plaintiff to it. D. All of the above.

Back 14

D. All of the above.

Front 15

Jennifer has offered to sell her laptop computer for $750 to Jack. She tells Jack that the computer is only 6 months old but, in fact, it is 3 years old, and Jennifer wants to unload the lemon. Jack agrees to buy the computer based on Jennifer's representations. This contract is: A. A void agreement because of the fraud involved. B. A voidable contract, one that Jack can void. C. A voidable contract, one that Jennifer can void. D. A void contract because of the UCC.

Back 15

B. A voidable contract, one that Jack can void.

Front 16

Which of the following types of property would be goods under the Uniform Commercial Code. A. A promissory note. B. A stock. C. A patent. D. A computer.

Back 16

D. A computer

Front 17

John enters into a contract to paint chads house. When Chad decides on a color, John will buy the paint and paint the house for the price of $2,500. This contract is governed by: A. The common law of contracts governs because this is a mixed contract (one for services and goods.) B. The common law of contracts governs because the predominant factor of the contract is for the sale of services and not goods. C. The Uniform Commercial Code governs because a sale of goods is involved. D. Both the common law and the Uniform Commercial Code will govern this contract.

Back 17

B. The common law of contracts governs because the predominant factor of the contract is for the sale of services and not goods.

Front 18

Xena enters into a contract with steely company to purchase a washer and dryer. She doesn't understand the financing terms, but signed the agreement anyway because she needs the appliances. The financing terms are beyond the legal limits on interest rates, and she is unable to make all of her payments when they are due. Steelies shoes. The court would: A. Be exercising judicial restraint if it requires Xena to pay as she promised even if the agreement was unfair and unwise. B. Have to rewrite the contract to be fair to both parties. C. Have to declare the contract void since it contains the illegal terms. D. Use the theory of promissory estoppel to remedy any unfavorable terms in the contract.

Back 18

A. Be exercising judicial restraint if it requires Xena to pay as she promised even if the agreement was unfair and unwise.

Front 19

Which of the following is probably a valid offer? A. I couldn't sell my moped for less than $150. B. If you would sell me this land, I would build a community park on part of it. C. Silly soda - - buy one, get one ! Newspaper ad. d. I will sell you this digital camera for $40.

Back 19

C. Silly soda - - buy one, get one ! Newspaper ad.

Front 20

Floyd offers to sell his 1967 Ford Mustang convertible to Tim. Before they conclude their negotiations Floyd dies. Which of the following is true? A. Floyd's heirs must sell the car to Tim. B. Floyd's heirs must continue to negotiate the offer and sell the car if there is no price can be determined. C. The offer terminates automatically upon to his death. D. There is a contract if Tim accepts before learning of the Floyd's death.

Back 20

C. The offer terminates automatically upon to his death.

Front 21

Collector Karl displays his beer can collection at the local swap meet. Mary sees the collection and is interested in buying it. Karl says he will sell the collection for $1500, mary says she really likes the collection but is only willing to pay $1000 which of the following is correct? A. Mary's counter offer terminates Karl's offer of $1,500. B. If Karl Rejects Mary's counter offer, she can still accept Karl's offer of $1,500. C. Neither offer is valid. Who would ever pay $1,000 or $1,500 for a beer can collection? D. Mary's offer is a firm offer. Karl has an exclusive right to consider her offer for a reasonable period of time.

Back 21

B. If Karl Rejects Mary's counter offer, she can still accept Karl's offer of $1,500.