Business Law Final
Showing posts with label Business Law Final. Show all posts
Showing posts with label Business Law Final. Show all posts

An email contract is

An email contract is





a. Void
b. Voidable
c. A violation of the Statute of Frauds
d. Valid and enforceable, assuming all the elements of a contract are present






Answer: D

Inferior performance is:

Inferior performance is:



a. The same as no performance at all
b. Is simply less than average performance
c. Performance which is almost complete
d. None of the above




Answer: A

Big High Drug Store contracts to hire Anna Sue as a pharmacist upon graduation in May, but she must receive her Pharmacist's license by the next December. This contract contains a(n)

Big High Drug Store contracts to hire Anna Sue as a pharmacist upon graduation in May, but she must receive her Pharmacist's license by the next December. This contract contains a(n)





a. Covenant
b. Condition subsequent
c. Condition precedent
d. Implied condition








Answer: B

Squeegie, 17 years old, buys a car for $20,000.00 cash from Fast Eddie's Used Cars. A week later Squeegie is stopped at a red light when he is rear-ended by Wingnut. Squeegie has the wrecked car, now worth $200.00, towed back to Fast Eddie's. Squeegie will

Squeegie, 17 years old, buys a car for $20,000.00 cash from Fast Eddie's Used Cars. A week later Squeegie is stopped at a red light when he is rear-ended by Wingnut. Squeegie has the wrecked car, now worth $200.00, towed back to Fast Eddie's. Squeegie will



a. Be able to disaffirm the contract and get his $20,000.00 back since he was a minor and returned the wrecked car
b. Be able to disaffirm the contract but only get $200.00 back
c. Won't be able to disaffirm his contract since his conduct was wanton
d. Will win a lawsuit against Fast Eddie for dealing with a minor







Answer: A

Generally, Consideration must be:

Generally, Consideration must be:




a. Of "Legally Sufficient Value"
b. A "Bargained-for-Exchange"
c. Of "Cash Money" only
d. All of the above
e. A and B above only








Answer: E

Jenna saw a vase in a store. A tag on the vase said, "Genuine Crystal, $125." Jenna said to Owen, the owner of the store, "I'll buy this vase for $125." Owen refused to sell the vase top Jenna. In a lawsuit brought by Jenna against Owen,

Jenna saw a vase in a store. A tag on the vase said, "Genuine Crystal, $125." Jenna said to Owen, the owner of the store, "I'll buy this vase for $125." Owen refused to sell the vase top Jenna. In a lawsuit brought by Jenna against Owen,



a. Jenna wins because a contract was formed when she said she would buy the vase
b. Jenna wins because the vase was unique
c. Owen wins because he rejected Jenna's offer
d. Owen wins because the contract was not written








Answer: C

Which of the following statements concerning the effectiveness of an offeree's rejections and an offeror's revocation of an offer are ordinarily true?

Which of the following statements concerning the effectiveness of an offeree's rejections and an offeror's revocation of an offer are ordinarily true?




An Offeree's Rejection is Effective When An Offereor's Revocation is Effective When
a. Received by the offeror Sent by the offeror
b. Sent by the offeree Received by the offeree
c. Sent by the offeree Sent by the offeror
d. Received by the offeror Received by the offeree








Answer: B

CitiBank makes a mistake at an auction which costs the CitiBank $350,000.00. After the final bid is accepted and the hammer has fallen, CitiBank realizes its mistake. CitiBank tries to overturn the final bid in a lawsuit.

CitiBank makes a mistake at an auction which costs the CitiBank $350,000.00. After the final bid is accepted and the hammer has fallen, CitiBank realizes its mistake. CitiBank tries to overturn the final bid in a lawsuit.






a. CitiBank wins because the mistake is so serious that enforcing the bid would be unconscionable
b. CitiBank wins because it would be unjust to allow the winning bid to benefit the high bidder by $350,000.00
c. CitiBank loses because of the legal theory of Bilateral Mistake
d. CitiBank loses because it made a Unilateral Mistake







Answer: D


The City announces a plan to build a multimillion dollar tennis center on Richland Road. Adjacent land values skyrocket. A local developer pays a premium price for an adjacent parcel of land. The City decides not to build the tennis center. The adjacent land values plummet, costing the local developer a million dollars. He sues the City for costing him a million dollars. The developer

The City announces a plan to build a multimillion dollar tennis center on Richland Road. Adjacent land values skyrocket. A local developer pays a premium price for an adjacent parcel of land. The City decides not to build the tennis center. The adjacent land values plummet, costing the local developer a million dollars. He sues the City for costing him a million dollars. The developer




a. Wins his lawsuit against the City because the City's actions were negligent
b. Wins his lawsuit against the City because he relied on the City's publicly announced plan to build the Tennis Center
c. Loses the lawsuit against the City because he was an incidental beneficiary of the City's plan to build the Tennis Center
d. Loses the lawsuit against the City because "detrimental reliance" doesn't apply to public contracts








Answer: C

Sara and Jesse are getting married. They discuss and orally agree on the disposition of all property in the event that the marriage is not successful. During divorce proceedings, Jesse states that the couple had an agreement as to the disposition of property. Is the agreement enforceable?

Sara and Jesse are getting married. They discuss and orally agree on the disposition of all property in the event that the marriage is not successful. During divorce proceedings, Jesse states that the couple had an agreement as to the disposition of property. Is the agreement enforceable?





a. Yes; it was an agreement made in contemplation of marriage
b. No, the agreement was not in writing
c. Yes, so long as the terms were reasonably specific or ascertainable
d. No; the agreement is contrary to public policy









Answer: B

Alpha Nu Theta verbally orders $3.500.00 of screen-printed t-shirts for their famous ANT Race contest from "Printin' On Tees." Once the t-shirts are ready, Alpha Nu Theta refuses to complete the purchase saying that since they didn't sign a purchase order, they aren't required to complete their end of the bargain. If they are sued for Breach of Contract, Alpha Nu Theta

Alpha Nu Theta verbally orders $3.500.00 of screen-printed t-shirts for their famous ANT Race contest from "Printin' On Tees." Once the t-shirts are ready, Alpha Nu Theta refuses to complete the purchase saying that since they didn't sign a purchase order, they aren't required to complete their end of the bargain. If they are sued for Breach of Contract, Alpha Nu Theta





a. Wins, since the Statute of Frauds requires all commercial contracts to be in writing
b. Wins since the Statute of Frauds requires that all contracts for the sale of goods over $500.00 be in writing
c. Loses since there is no fraud involved in this transaction
d. Loses since they ordered specially manufactured goods which were of no real value to anyone else
e. Loses since "Printin' On Tees" should have realized the Humane Society wouldn't allow ANT racing by drunk college students








Answer: D

According to Mr. Cochran, courts do not enforce "gift" contracts because

According to Mr. Cochran, courts do not enforce "gift" contracts because





a. For almost a thousand years courts have not enforced such contracts
b. "gift" contracts tend to have a dramatic economic effect on the economy
c. A person's word is their bond
d. "gift" contracts don't help the economy; they are merely a transfer of wealth








Answer: D

You contract with the Outhouse Mice to perform 3 sets at your spring formal for $10,000.00. Other than the fact that they were drunk and sick at your formal, their sets were only 15 minutes long each. They want full payment; you don't want to pay them anything. You both eventually agree that they will be paid $1,000.00, mostly because they were the funniest drunk and sick people anyone had ever seen. This compromise would

You contract with the Outhouse Mice to perform 3 sets at your spring formal for $10,000.00. Other than the fact that they were drunk and sick at your formal, their sets were only 15 minutes long each. They want full payment; you don't want to pay them anything. You both eventually agree that they will be paid $1,000.00, mostly because they were the funniest drunk and sick people anyone had ever seen. This compromise would






a. Not be enforceable because the contract was ambiguous
b. Not be enforceable because rock stars are supposed to only look drunk, not be drunk
c. Be enforceable because this was a unilateral mistake
d. Be enforceable because this was an Accord







Answer: D


You contract to rent a room at the inn for 2 months while you are in summer school. You drop out after the first day when you find out Mr. Cochran is going to be the professor. You get another person to take your place on the contract and fulfill your obligations under the contract with the full agreement of all parties. This is

You contract to rent a room at the inn for 2 months while you are in summer school. You drop out after the first day when you find out Mr. Cochran is going to be the professor. You get another person to take your place on the contract and fulfill your obligations under the contract with the full agreement of all parties. This is






a. Promissory estoppel
b. Part performance
c. A novation
d. A jurat of acknowledgment
e. Como esta usted








Answer: C

Jack and Jill were discussing business over lunch when they agreed on the sale of some goods. Because neither of them had any paper handy, Jack wrote the following on a napkin: "Jill agrees to purchase from Jack, 1,000 widgets to be delivered on July 1, 2011, at a cost of $10,000, payable on delivery." Jill and Jack both signed the napkin. Jack delivered the widgets per the contract, but Jill refuses to pay for them. If Jack sues Jill for the price of the goods, the most likely result is which of the following?

Jack and Jill were discussing business over lunch when they agreed on the sale of some goods. Because neither of them had any paper handy, Jack wrote the following on a napkin: "Jill agrees to purchase from Jack, 1,000 widgets to be delivered on July 1, 2011, at a cost of $10,000, payable on delivery." Jill and Jack both signed the napkin. Jack delivered the widgets per the contract, but Jill refuses to pay for them. If Jack sues Jill for the price of the goods, the most likely result is which of the following?




a. Jill will win because this writing is not sufficient under the Statute of Frauds.
b. Jack will win because the writing is sufficient under the Statute of Frauds.
c. Jill will win because this is a formal contract.
d. Jack will win because the Statute of Frauds does not apply to this situation.







Answer: B
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