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. True False Flag this Question 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. True False Flag this Question 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. True False Flag this Question 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." True False Flag this Question 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.) True False Flag this Question 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 Flag this Question 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 Flag this Question 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. Flag this Question 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. Flag this Question 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 contracts. 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. Flag this Question 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. Flag this Question 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 act. One party promises the other she will sell her car to him for $350 if she feels like it next week. All of the above are true. Flag this Question Question 131 pts The Magnuson-Moss Warranty Act requires all sellers to offer at least limited warranties with the sale of their products. True False Flag this Question 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. True False Flag this Question 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 purpose. Flag this Question 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 Flag this Question 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. Flag this Question 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 from: Ron or Quality Home only. Pools Galore or Quality Home only. Pools Galore only. Ron only Flag this Question 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. Flag this Question 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.
