Midterm Exam 2

A  Compensatory Damages.

B  Special Damages.

C  Liquidated Damages.

D  Statutory Damages.

A  Substitution.

B  Substantial performance.

C  Rescission.

D  Accord and Satisfaction.

A  Perfect Tender.

B  Quasi Contract.

C  Utilitarian.

D  Mailbox Rule.

A  Offer

B  Consideration

C  Acceptance

D  It does not lack any elements. It is a valid contract

A  a voidable contract, one that Jennifer can void.

B  a voidable contract, one that Jack can void.

C  a void agreement because of the fraud involved.

D  a void contract because of the UCC.

A  Jill has no potential liability to the customer.

B  Jill is personally liable, but the woman must first collect from the general partners before collecting from Jill.

C  Jill can only be liable to the amount of her investment.

D  Jill can be held personally liable to the customer since she is a partner.

A  A general partner in a limited partnership.

B  A limited partner in a limited partnership.

C  A partner in a general partnership.

D  A sole proprietor.

A  Matt would win; this is an implied contract.

B  Walter would win as there was no contract.

C  Matt would win in quantum meruit.

D  Walter would win because of the UCC.

A  On January 16, the contract was executed.

B  On January 16, the contract was executory.

C  This contract is a unilateral contract.

D  There is no contract until January 27.

A  the corporation can typically operate without a board of directors.

B  the shares are publicly traded.

C  minority shareholders are provided more protection than in regular corporations.

D  the shareholders usually restrict share transfer.

A  The contract is unenforceable because it is exculpatory.

B  The contract is enforceable, but only up to the value of the water system.

C  The contract is unenforceable because it is unconscionable.

D  The contract is fully enforceable as written.

A  When Beth turns 18.

B  Only if Mona pays half of the value of the note.

C  Only if Mona dies before Beth’s obligation is discharged.

D  If Beth pays the obligation in full under the terms of the note.

A  there is promissory estoppel.

B  conduct of the parties indicates they intended an agreement.

C  justice demands it.

D  there is undue influence.

A  only one promise is involved in a unilateral contract.

B  the Statute of Frauds applies to one and not the other.

C  only one promise is involved in a bilateral contract.

D  one is enforceable, the other is not.

A  The law would not enforce Jane’s promise, as it does not have a lawful purpose.

B  Shelly would win as this is a unilateral contract.

C  The law would enforce this valid, enforceable contract.

D  Jane would win as this is a voidable contract.

A  A general partnership.

B  A close corporation.

C  A limited partnership.

D  A limited liability company.

A  A false prediction that a painting’s value will rise.

B  A false statement that a $30,000 car attracts members of the opposite sex.

C  Silence as to a toxic waste problem on real property that the buyer would not reasonable be able to find or see after investigating.

D  A false statement that a used car is “the best deal in town.”

A  acceptance must mirror the offer.

B  acceptance is deemed when received.

C  acceptance is deemed when dispatched.

D  written contracts must be signed and mailed.

A  Cyndi is personally liable for any negligent act committed by Rachel in the scope of the business activity.

B  Rachel is personally liable for any business debts, regardless of whether she or Cyndi created the obligation.

C  Rachel is personally liable for any business contracts entered into by Cyndi.

D  All the above.

A  enforceable because the agreement accomplishes Ben’s goal of keeping Becky from drinking.

B  not enforceable because Becky is a minor and could disaffirm the contract.

C  not enforceable because Becky does not have a legal right to drink alcohol.

D  enforceable because Becky is giving up the right to do something she would otherwise be entitled to do.

A  the Statute of Frauds applies.

B  the written agreement is a full and final expression of the parties’ agreement.

C  the contract has been fully performed by both parties.

D  the contract was a full and final oral explanation of the parties’ agreement.

A  if they misrepresent their age.

B  when it provides them with necessities.

C  at any time so long as the contract was created when they were a minor.

D  as long as they are they age of minority.

A  Offer

B  Performance

C  Consideration

D  Legality

A  general partnership.

B  corporation.

C  S corporation.

D  limited liability company.

A  Myrtle would not have to pay for the yard work.

B  This is an express, voidable contract that either party may avoid.

C  This is an implied, unilateral contract and she must pay the price requested by the man.

D  The court would order Myrtle to pay the reasonable value of the yard work because of the benefit conferred on her.

A  Seller is not responsible for property damage regardless of the cause of the injury.

B  Creditor charges 38% interest on a loan.

C  Employee agrees to never work for a competing company.

D  Buyer agrees to pay any costs of litigation.

A  Doctor and patient.

B  Husband and wife.

C  Debtor and creditor.

D  Chief executive officer and corporation.

A  real estate.

B  services.

C  employment.

D  All of the above.

A  $100,000.

B  whatever they receive from the partnership.

C  $50,000

D  None of the above. The partnership itself will pay the taxes on the business’s profit.

A  Walter will win, as the promise is enforceable.

B  Walter will lose because he can’t use past acts to satisfy consideration.

C  Walter will lose based upon the preexisting duty rule.

D  Walter will win, as no consideration is required to modify an employment contract.

A  a unilateral contract.

B  an unliquidated offer.

C  a conditional offer.

D  an illusory promise.

A  If Wilde’s agrees to accept less than the full amount as full payment, the agreement is not binding.

B  The disputed amount is also known as an unliquidated amount.

C  If the parties agree to settle for less than the full amount, there is no consideration to make the agreement enforceable.

D  If Wilde’s agrees to accept less than the full amount, the agreement is only binding if it is in writing and signed by Bernie.

A  unilateral, express contract.

B  unilateral, implied contract.

C  bilateral, express contract.

D  bilateral, implied contract.

A  Be able to recover the $3 million lost on the contract.

B  Be able to recover the $2,000 but not the $10,000.

C  Not be able to recover the $12,000.

D  Be able to recover the $12,000.

A  accept the offer any time before termination.

B  revoke the offer any time before acceptance.

C  ensure the contract is legally enforceable.

D  provide consideration as a substitute for the offer.

A  If waxing had been discussed, Ron must wax the car before he can get paid.

B  Don must prove that Ron was supposed to wax the car by showing the notes he took during their negotiations.

C  Don must pay the value of the benefit received, but doesn’t have to pay the full price because Ron did not wax the car.

D  Ron is under no obligation to wax the car, even if Ron and Don had discussed the possibility.

A  FALSE

B  TRUE

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  FALSE

B  TRUE

A  FALSE

B  TRUE

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  TRUE

B  FALSE