Dev Shell 2nd Edition 2015 Spring D Term Quiz 2

Boris skydives from a plane and gets tangled in a tree, hopelessly suspended and swinging precariously in his parachute from the branches of the tree. Natasha sees that he is in trouble and comes to his rescue. Once Boris is safely on the ground, he gratefully promises to give Natasha half of his life savings account. When he changes his mind, Natasha will probably be unsuccessful in enforcing his promise.

True

False

Bud calls Lou and says, "I'll sell you my car for a thousand bucks, interested?" Lou says, "I'll look it up on the Internet. If the Blue Book price is close, I'll pay you $1,000 in the morning." At sunrise Lou shows up with $1000.

Bud must sell him the car because Lou accepted the evening before when he promised to look up the car's value.

Bud must sell him the car because he cannot revoke his offer after Lou accepted.

Bud does not have to sell the car because his promise was unclear.

Bud does not have to sell the car because the payment is based on past consideration.

Which of the following is not required for promissory estoppel to apply?

The promise made must be reasonable.

The promise made must be relied on by the promisee to the promisee's detriment.

The promisor must suffer an injustice if the promise isn't enforced.

The promisor must know that the promisee is likely to rely on the promise.

Big Time Appliance advertised 46-inch plasma TVs for $10 to the first 50 buyers on Friday. This ad is:

not a valid offer because it is not a specific commitment to sell.

not a valid offer but, rather, invites the buyer to make an offer.

a valid offer because it is specific enough to constitute a unilateral contract.

a valid offer because it requires a certain manner of acceptance.

Jeff goes to a car dealership and the salesperson tells him that the car he's looking at is a great car and an excellent value. The statements made by the salesperson, if untrue, will not be adequate to create either an innocent misrepresentation or a fraudulent misrepresentation.

True

False

Amanda, a recent university graduate, needed a car to get to her new job. To help Amanda secure a loan for the car, Ted, a friend, agreed to pay the loan should Amanda default. Ted's promise is enforceable as long as he goes to the bank, declares his promise to guarantee Amanda's loan in front of witnesses, and shakes hands on the deal, giving his word.

True

False

Josh is negotiating the sale of his car with Jonathan. Jonathan asks if the car has ever been in an accident, and Josh replies, "No, it has never been in an accident." In fact, the car was nearly totaled the year before when Sheila, Josh's girlfriend, was driving Josh's car, hit a wet spot, and skidded into a pole. She had the car repaired without telling him about the accident. Josh has committed:

fraudulent misrepresentation.

innocent misrepresentation.

an unconscionable act.

no misrepresentation because he thought he was being truthful and didn't intend to deceive Jonathan.

n offer may be terminated in all but which of the following ways?

acceptance

revocation

rejection

counteroffer

Moe has entered into a contract with Larry. Subsequently, Moe assigns his rights in that contract to Curley. Which of the following would not prevent that assignment?

The contract contains an antiassignment clause.

The assignment would materially alter Larry's duties and cause an increased burden or risk to Larry.

Larry protests the assignment and demands that Moe not make the assignment.

The assignment would violate public policy matters.

When an assignment is made, the assignee has the right to reform the contract and change the obligor's rights and duties as the assignee wishes.

True

False

George has entered into a contract with Mark to supply raw materials to Mark's factory. The contract does not contain an antidelegation clause. George then delegates his duty to supply the raw materials to Wayne, a competitor of Mark. This is a valid delegation.

True

False

Liquidated damages must be directly related to the breach of contract they are compensating the nonbreaching party for.

True

False

Craig is a licensed plumber and has a contract to install a replacement toilet for Mary. When Craig realizes that he has booked two appointments simultaneously, he calls Brian, another licensed plumber, and asks him to install Mary's toilet. Craig has assigned his duties to Brian.

True

False

Oscar is speeding and driving inattentively when he runs into Felix, who is driving very cautiously. As a result of the accident, Felix's car needs $2,500 worth of repairs and Felix loses a week's salary because he has to take off from work to recover from injuries sustained during the crash.

Both the repairs and the lost wages are compensatory damages.

The repairs are compensatory damages, and the lost wages are consequential damages.

The repairs are consequential damages, and the lost wages are compensatory damages.

Both the repairs and the lost wages are consequential damages.

Fred's Flooring (FF) contracted with Harry homeowner to install wood flooring throughout Harry's home. Harry was to purchase the flooring, and the contract was solely for installation. Payment was to be 20 percent at the time that the work commenced and 80 percent once the flooring was installed. Harry purchased the flooring materials and paid the 20 percent, so FF began work. When FF's work was halfway completed, Harry realized that he didn't have the money to pay FF on completion, so he bolted the doors and refused access. If FF wants to rescind the contract and be paid for work completed, FF would sue for:

compensatory damages.

consequential damages.

restitution.

liquidated damages.

A rescission of a contract may occur when either party chooses to end the agreement.

True

False

The only state that has not adopted the UCC is:

California.

Louisiana.

Texas.

Arizona.

Which of the following items would be properly subject to a UCC sales contract?

a house

a Christmas tree sold in a parking lot

rights to a patent

an employment contract

On February 1, Frank's Fedora Manufacturers sends an offer to Metropolitan Outfitters by letter with all price, quality, quantity, and delivery terms clearly stated, indicating that the offer will remain open until October 1. On September 1 Metropolitan sends an acceptance of the offer to Frank's with no material alterations to any of the stated terms in the offer. The acceptance makes the contract valid and enforceable.

True

False

Absent specific agreements between the parties, the reasonableness requirement of the UCC governing delivery of goods requires each of the following except:

the goods must be delivered in one shipment.

€

the goods must be delivered at a reasonable hour.

the goods must be delivered on a weekday.

the goods must be delivered in a reasonable manner.

UCC risk of loss provisions will govern the terms of a contract even if the parties have specified risk allocation in the contract.

True

False

If the seller ships conforming goods, the buyer has a duty to accept them and may not reject the goods.

True

False

Johnson Builders is selling a newly built home to Sheila. JRK Realtors is handling the transaction. This sale is covered under Article 2 of the UCC.

True

False

Wrongfully revoking an acceptance will constitute a breach of contract by the buyer.

True

False

The International Chamber of Commerce abbreviation indicating that goods are to be picked up by the buyer and not delivered is:

EXW.

FAS.

€

FOB.

FCA.