Time Remaining:
1. Tom's Timber Outlet and Olivia, a consumer, enter into a contract for a sale of plywood. If the contract
includes a clause that is perceived as grossly unfair to Olivia, its enforcement may be challenged under
(Points : 1)
the mirror image rule.
the principle of fair trade.
the predominant-factor test.
the doctrine of unconscionability.
2. Mitchell orally agrees to pay Lorena to plant and harvest a quarter of Mitchell's farm acreage for four
soybean seasons. After Lorena prepares the land and plants the first crop, Mitchell says that their deal is
off. Lorena can most likely recover (Points : 1)
in quasi contract.
nothing.
in restitution.
on the parties' existing contract.
3. Based on Bluto's conduct, Cass reasonably believes that Dee has the authority to act on Bluto's behalf
even though Dee does not have the actual authority to do so. Cass makes a paymnet to Dee for Bluto.
Dee keeps the money and disappears. Bluto (Points : 1)
can demand that Cass make a repayment directly to Bluto.
can obtain damages from Cass for Dee's misconduct.
may be estopped from denying that Dee had authority.
must repudiate Dee's misconduct to avoid liability.
4. Desiree signs a contract with Elena to kill Francois. Desiree pays Elena but she refuses to perform.
Desiree can (Points : 1)
do nothing with respect to the contract.
enforce the contract or recover the payment.
only enforce the contract.
only recover the payment.
5. Chelsea, an agent for Bountiful Seafood, Inc., has often done business with Alvin's Dockside Diner on
Bountiful's behalf. When Chelsea and Bountiful terminate their agency, to avoid liability for later deals,
Alvin's must be notified by (Points : 1)
Chelsea and Bountiful.
Chelsea only.
Bountiful only.
no one.
6. Nashville Harmonies, Inc. and Taylor enter into a contract for Taylor to write six songs for which
Nashville agrees to pay her. Taylor transfers her right to payment under the contract to Omni
Entertainment Agency. In the transfer of rights, Taylor is (Points : 1)
a delegator.
an assignor.
an obligor.
an alien.
7. Without authorization, Rolf contracts on behalf of Sari to have Tige paint the interior and exterior of
Sari's house. Sari ratifies the contract. Later, Sari tries to rescind the part of the contract relating to the
exterior. This attempt will be (Points : 1)
partly successful.
partly unsuccessful.
totally successful.
totally unsuccessful.
8. Nutrition Services, LLC, and Oneida's Catering & Cafe Supply Company sign a written contract that
does not involve a sale of goods. To be enforceable, the writing must include (Points : 1)
a correct title, such as "Service Contract."
all essential and non-essential terms.
a statement of the consideration.
a description of the parties' businesses.
9. Over the course of a year, Mom's Appliance Company sells its wares to customers to whom it extends
credit. Mom's orders the appliances from NET Appliance Depot's warehouse, from which the items are
shipped via common carrier to Mom's customers. Article 2 of the UCC governs. (Points : 1)
all of the parties' sales of the goods.
Mom's extension of credit.
NET's storage of the goods.
the common carrier's delivery of the goods.
10. A contract between Drill-Bit Sharpeners, Inc., and East Oil Mining Corporation contains a clause
stating that any assignment is "void." This ordinarily prohibits (Points : 1)
any assignment.
no assignment.
only an assignment of contract rights to personal services.
only an assignment that would change the obligor's risk.
11. Ramon contracts in writing to sell his Little Shop of Bagels to Suni. When Suni discovers that the
kitchen equipment has been removed, she files a suit against Ramon. The court decides that the written
contract includes everything that the parties intended. An agreement about the kitchen equipment may be
admissible if it is (Points : 1)
a previous agreement.
not otherwise contained in the parties' contract.
a subsequent modification of the parties' contract.
under no circumstances.
12. Bud approves on behalf of Cody -- but without authorization -- a contract with Devon to build a new
silo. Cody does not ratify the contract. Later, Devon tries to enforce the deal. This attempt will be (Points :
1)
partly successful.
partly unsuccessful.
totally successful.
totally unsuccessful.
13. Sole Savers, Inc., and Rite Fit Footwear Stores enter into a contract for a sale of shoes. The contract
indicates that the price includes transportation costs to a specific destination by including the term
(Points : 1)
C.I.F.
delivery ex-ship.
F.A.S.
F.O.B.
14. Fruits & Vegetables, Inc., and Grover's Market enter into a contract for the delivery of locally grown
produce. The parties use a standard Fruits & Vegetables form that contains some of the terms the parties
agree on but not others. Some of the produce spoils before it can be sold. Grover's refuses to pay for the
spoiled goods. Fruits & Vegetables files a suit against Grover's, claiming that the buyer assumed the risk
of the spoilage of the unsold produce. The court may allow evidence of this term if it finds that the parties'
contract is (Points : 1)
fully integrated.
not fully integrated.
not supported by consideration.
a complete and final statement of their agreement.
15. Miley and Rico enter into a contract for the closing of a sale of Miley's recording studio. When Rico's
schedule conflicts, he asks Oliver to perform his duties at the closing. This transfer of duties is (Points : 1)
a delegation.
an assignment.
prohibited.
a negotiation.
16. In selling a house, Robin tells Destry that the wiring and plumbing are of a certain quality. Robin
knows nothing about the quality, but it is not as she specifies. Destry buys the house. On learning the
truth, Destry confronts Robin, who says she was not trying to fool him -- she was only trying to make a
sale. This is (Points : 1)
a mistake of value.
fraud.
innocent misrepresentation.
unconscionable.
17. Iggy hires Joy to act as his agent to purchase Kup-a-Koffee Kompany. Iggy tells Joy to reveal only
that she is buying the firm on behalf of a third party, without telling Kup-a-Koffee's seller who that third
party is. Iggy is (Points : 1)
a disclosed principal.
an implied principal.
an undisclosed principal.
a partially disclosed principal.
18. Jim agrees to act on Kit's behalf, subject to Kit's control, and Kit trusts Jim to so act. This describes a
relationship between (Points : 1)
a business and its competitors.
a government and its governed.
a parent and a child.
a principal and an agent.
19. Roxanne, a minor, is living at home with her parents, but signs a lease with a landlord to rent an
apartment. Roxanne can (Points : 1)
disaffirm the lease because her parents can be held liable.
disaffirm the lease without liability.
not disaffirm the lease because an apartment is a "necessary."
not disaffirm the lease because her parents could be liable.
20. Kip sells an apartment building to Lacy with a promise to repair the roof, which violates the local
housing code, within six months. One year later, Kip sends Milo, a carpenter, to fix the roof. Lacy orders
Milo to leave and refuses to make further payments to Kip, who files a suit against Lacy. Kip's late attempt
to fix the roof is most likely (Points : 1)
a material breach.
complete performance.
excused by Lacy's refusal to make further payments.
substantial, but not complete, performance.
21. Ester is a lighting technician who hires out on a per-project basis to film and television production
companies, as well as theaters and other venues that stage dramatic and musical performances. In this
capacity, Ester is (Points : 1)
an agent.
an employee.
an independent contractor.
a principal.
22. Crafted Countertops, Inc., and Kitchen Design Corporation enter into a contract that does not specify
the payment terms. Payment may be made in (Points : 1)
any commercially normal or acceptable means except credit card.
cash only.
any commercially normal or acceptable means.
cash or check only.
23. Omar is Precise Service Company's chief executive officer. On Precises's behalf, Omar solicits
business, hires and fires workers, and handles the finances. Precise pays Omar varying amounts,
depending on his "needs." Omar is most likely (Points : 1)
a principal.
an employee.
an employer.
an independent contractor.
24. Neighborly Insurance Company and Ollie put their agency agreement into a written document that
describes the rights and duties of both parties. Ollie, as the agent, has (Points : 1)
apparent authority.
equal authority.
express authority.
implied authority.
25. Solana, a minor, enters into a contract to buy a dozen movies from eHD TV Stream, Inc., an Internet
video service. Solana reaches the age of majority and does not disaffirm the contract nor make payment
on it. eHD files a suit against her. The court will most likely consider the contract ratified if it is (Points : 1)
executed.
executory.
express.
emancipated.
26. Juana contracts to sell Ignacio her MP3 player for $30. This contract will be fully discharged when
Juana and Ignacio (Points : 1)
agree to sign a bill of sale.
exchange the player for the $30.
sign a receipt.
shake hands and go their separate ways.
27. Lew believes an old comic book he owns has little value, but Murray is convinced it is a valuable
collector's item. Lew sells it to Murray for $10 before learning it is worth $1,000. Lew can (Points : 1)
not rescind the contract.
rescind the contract on the basis of fraud.
rescind the contract on the basis of mistake.
rescind the contract on the basis of puffery.
28. Blueberry Cafe signs an agreement with County Credit Bank to borrow $40,000 at 20 percent interest.
Later, the state legislature passes a law lowering the maximum permissible rate of interest to 15 percent.
Blueberry's best argument for avoiding payment to County Credit is that (Points : 1)
performance of the contract is commercially impracticable.
payment of the loan would force the debtor into bankruptcy.
the law has rendered performance of the contract illegal.
the specific subject matter of the contract has been destroyed.
29. Roc buys a farm from Steve, who claims that it would be a prime site for a housing subdivision. Roc
later learns that the law does not permit the land to be used for housing. Roc may (Points : 1)
not rescind the contract.
rescind the contract only if Roc did not know the law before the deal.
rescind the contract only if Steve knew about the law before the deal.
rescind the contract only if the law is not common knowledge.
30. Oceanic Vessels, Inc., and Pacific Harbor Company enter into a contract for a sale of a barge. Oceanic
is a merchant who deals in goods of the kind sold. The goods are defective. Under the UCC, the implied
warranty of merchantability is breached (Points : 1)
only if Oceanic did not know about and could not have discovered the defect.
only if Oceanic did not know about the defect.
only if Oceanic knew about or could have discovered the defect.
regardless of what Oceanic knew or could have discovered.
31. Marky holds a power of attorney for Nuncio. Marky is (Points : 1)
an attorney-in-fact.
an attorney-in-law.
a durable attorney.
a notary public.
32. Dinah contracts to repair a rip in a ventilation duct for Ernie's Cafe for $100. If Dinah does not
perform, Ernie must pay (Points : 1)
$100.
$50.
$10.
$0.
33. Earl holds 1,000 pounds of perishable fruit in storage for Fresh Food Corporation. Fresh Food does not
pay for the storage. Earl sells the fruit to Green Grocers, Inc. This sale represents (Points : 1)
a breach of contract.
a mitigation of damages.
rescission and restitution.
specific performance.
34. Jack, a minor, takes out an automobile insurance policy and pays a $1,000 premium. If Jack
disaffirms the contract, he can most likely recover (Points : 1)
$500.
$1,000.
$1,500.
nothing.
35. Resource Remarketers, Inc., offers to buy crude oil from Petro Producers, Inc. The parties later
dispute the deal in court. Petro's claim that Resource ordered 10,000 gallons and Resource's testimony
that it ordered only 1,000 gallons (Points : 1)
prevents the enforcement of any contract between these parties.
supports an enforceable contract for 10,000 gallons.
supports an enforceable contract for 5,500 gallons.
supports an enforceable contract for 1,000 gallons.
36. Jody is an agent for Kwik Credit Company (KCC). In the course of Jody's performance for KCC, Jody
pays Leo for certain auto maintenance and repair services. Jody's right to obtain the amount of those
payments from KCC arises under the principal's duty of (Points : 1)
avoidance.
cooperation.
indemnification.
reimbursement.
37. Stacy, a minor, charges the cost of an expensive leather jacket at a Girl's Trend store. Two nights
later, Stacy loses the jacket at Minors Only Club. She disaffirms the jacket's purchase. Stacy owes Girl's
Trend the reasonable value of the jacket (Points : 1)
if it is deemed a "necessary."
if it is deemed unnecessary.
under any circumstances.
under no circumstances.
38. Kurt persuades Leo to buy his bicycle by telling Leo that the bike rides "like the wind." Kurt's
statement is (Points : 1)
duress.
fraud.
puffery.
undue influence.
39. Liz and Molly work as clerks in Nia's Dress Shop. Nia withholds federal taxes from their pay, and
controls the methods and details of the performance of their work. Liz and Molly are not authorized to
modify the prices or other terms of a sale at the shop. Nia authorizes Liz to sell clothes at remote locations
at prices that Liz negotiates in those locations. With respect to sales at those locations, Liz is (Points : 1)
an independent contractor.
Nia's employee only.
Nia's employee and agent.
Nia's principal.
40. Rand offers Quade the amount of a down payment on a house if Quade marries Rand's daughter
Pepper. This promise is enforceable (Points : 1)
only if it is in writing.
only if the price of the house includes the land.
only if Pepper agrees to marry Quade.
under no circumstances.
41. Shade Tree Landscaping Company enters into a contract with Jill to landscape Jack's yard, using Fertile
Nursery to supply trees and buses. Maria owns the lot next to Jack's property. The landscaping is a gift
from Jill to Jack, who is Jill's friend, but they are not related. What type of beneficiary is Jack? What type of
beneficiary is Maria? Why type of beneficiary is Fertile Nursery? If Shade Tree refuses to do the job, who
can enforce the contract against it? (Points : 8)
42. Estimable Builders, Inc., contracts with Beach Investment Company to build a Cool Juice 'n Fruit stand
near Divers' Beach. The work is to begin on April 1 and be done by June 1, so that the stand can open for
the summer. Estimable does not finish until June 14. The stand opens but Beach Investment loses two
weeks' early summer sales due to the delay. Is Beach Investment's duty to pay for the construction of the
stand discharged? (Points : 6)
43. Inventory Control Corporation (ICC) hires Jim, a minor, to create customized software for ICC's clients.
Jim signs a contract that requires him to work for ICC for eighteen months. Before beginning work, Jim
tells ICC that he will not work for ICC but is going to work for Kwik Kounts, Inc., an ICC competitor. Is
ICC's contract with Jim enforceable? Why or why not? (Points : 6)
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