Uploaded by samaresh chhotray

4.7 Quiz

Question 11 pts
Most of the legal rules which govern the validity of, and terms of contracts in the United
States have developed from statutes enacted by Congress and state legislatures.
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Question 21 pts
If the contract is clear in its written terms, a court normally will not allow outside
evidence to determine what the contract means.
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Question 31 pts
If one party to the contract is mistaken as to the value of the contract (without any fraud
by the other party) s/he may generally revoke the contract.
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Question 41 pts
If one party (Kevin) breaches a contract, and the other party (Susan) wants a court to
order Kevin to perform his obligations under the contract (rather than pay damages),
Susan should seek an order for "Specific performance."
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Question 51 pts
The UCC will apply if the primary purpose of a contract is the performance or sale of a
service (such as painting a house.)
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Question 61 pts
Oral testimony in court about what the terms of a written contract mean and whether
they are contradicted by an earlier oral agreement is usually prohibited under which of
the following rules?
the Statute of Frauds
the Mirror Image Rule
the Material Breach rule
the parol evidence rule
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Question 71 pts
Under the common law, an acceptance of an offer for a contract is effective:
even though it adds to or subtracts from the terms of the offer.
only if it is expressed in writing
only if it is sent through the mail.
only if it is the mirror image of the offer
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Question 81 pts
Abby, who is a minor, enters into a contract with Tim, who is an adult. Which of the
following is correct about this contract?
Abby has no rights to void or cancel this contract.
Tim may void this contract if he chooses to do so.
Contracts with minors are illegal and unenforceable by either party.
Abby may void or cancel this contract at any time before she becomes an adult.
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Question 91 pts
Ann offers to buy a laser printer, with a case of paper and an extra cartridge, from Best
Office Products for $200. Curt, Best’s representative, says, “OK, but no paper and no
extra cartridge.” Curt has:
accepted the offer
made a counteroffer without rejecting Ann’s original offer.
rejected the offer and made a counteroffer.
revoked Ann’s offer.
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Question 101 pts
The statute of frauds is:
a law that outlaws the use of fraud as a technique for getting persons to enter into
the law that defines the elements of the offense of fraud.
a law that prohibits the enforcement of contracts entered into on the basis of fraud
a law that specifies which contracts must be in writing.
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Question 111 pts
On June 1, Edward visited a bicycle sales and service center to buy a bike. He spotted
a used bike he liked and was told by the dealer that he could have the bike for $100
cash. Since Edward needed a few days to get the money, he got a signed, written
statement by the dealer that Edward could buy the bike for $100 at any time on or
before June 15. On June 10, Edward came to the dealer with the money, but the bike
had been sold to another customer. Was the dealer under any obligation to keep this
offer open until June 15?
No, because under the UCC an offer may be revoked at any time before it is accepted
No, because the dealer made a firm offer which requires consideration to be
enforceable. Edward gave the dealer nothing in exchange for keeping the offer open, so
the dealer was entitled to revoke it.
Yes, because the dealer made a firm offer under the UCC, which does not require
consideration to be enforceable.
No, because Edward rejected the offer by leaving without paying for the bike.
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Question 121 pts
A bilateral contract is created when:
one party gives a promise in exchange for the other party’s promise
one party gives a promise in exchange for the other party’s performance of a particular
One party promises the other she will sell her car to him for $350 if she feels like it next
All of the above are true.
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Question 131 pts
The Magnuson-Moss Warranty Act requires all sellers to offer at least limited warranties
with the sale of their products.
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Question 141 pts
In a product liability lawsuit brought under the theory of strict liability, one very effective
defense a manufacturer may have is misuse of the product by the consumer.
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Question 151 pts
Under the Uniform Commercial Code, the implied warranty of fitness for a particular
purpose is:
applicable only to sales between merchants.
given by all sellers of goods.
extended only to qualified buyers.
applicable when the seller knows that the buyer needs the goods for some special
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Question 161 pts
An obligation of the merchant-seller that the goods are reasonably fit for the ordinary
purposes for which they are manufactured and sold, and that the goods are of fair
average quality, is known as:
the warranty of merchantability
the warranty of fitness
an express warranty
the strict liability principle
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Question 171 pts
In most states, a consumer who is injured by a defective product that was used in a
reasonable manner
can recover damages from the manufacturer without proving negligence, or fault, on the
part of the manufacturer.
can recover damages from the manufacturer only by proving negligence on the part
of the manufacturer.
is limited to claims for breach of express warranty.
is limited to claims for breach of implied warranty.
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Question 181 pts
Pools Galore, Inc., makes above-ground swimming pools, which it sells to Quality Home
Stores. Quality Home sells the pools to consumers, including Ron, who lets Sara use
his pool. Sara is injured while using the pool, when one of the steps breaks as she
climbs into the pool. In a product liability suit based on strict liability, Sara may recover
Ron or Quality Home only.
Pools Galore or Quality Home only.
Pools Galore only.
Ron only
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Question 191 pts
Punitive damages are sometimes awarded by a court to make an "example" of, or to
punish a defendant who has engaged in malicious or intentional conduct. The award of
such damages is vigorously opposed by corporate defendants for all of the following
reasons except which one?
the plaintiff and his/her attorney receive a "windfall" of extra compensation, after being
compensated for the damages that he/she suffered
the damages are likely to be very large, perhaps in the millions of dollars.
there are few standards upon which the jury bases the size of the award, so they
may pick a number "out of the air."
the awarding of punitive damages might result in companies doing more testing and
making safer products in the future.
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Question 201 pts
Sam Farmer has a contract with Joan's Grocery to deliver 100 bushels of Grade A
apples on November 2. However, in fact Sam delivers 75 bushels of Grade A and 25
bushels of Grade B apples. What remedies does Joan have?
Joan can reject the apples that do not conform to the contract
Joan can "cure" the nonperformance if she wishes.
Joan can "cover" by purchasing 25 bushels of Grade A apples elsewhere and recover
any increased costs from Sam.
Both (a) and (c) are correct.