Multiple-Choice Questions 1. Bob, a mechanic, claims that Cathy owes him $1,500 on a repair job. Bob

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Multiple-Choice Questions
1. Bob, a mechanic, claims that Cathy owes him $1,500 on a repair job. Bob wants to assign his claim to Hardknuckle Bank. The likeliest reason that Bob wants to do this is
(a) Cathy also owes Hardknuckle Bank money.
(b) Hardknuckle Bank owes Bob money on a consumer claim.
(c) Hardknuckle Bank owes Bob money on a repair job.
(d) Bob owes Hardknuckle Bank money.
(e) Bob and Cathy are close friends.
2. The agreement between Bob and Cathy says nothing about assignment. May Bob assign his claim to Hardknuckle?
(a) Bob may assign his claim but only with Cathy's agreement.
(b) Bob may assign his claim, but only if Cathy and Hardknuckle agree.
(c) Bob may assign his claim without Cathy's agreement.
(d) Bob may assign his claim but Cathy may nullify the assignment.
(e) Bob may not assign his claim because it violates public policy.
3. Jody is obligated under a contract to deliver 100,000 plastic bottles to a spring water company. Jody's supplier has just gone bankrupt; any other suppliers will charge her more than she expected to pay. This is
(a) Consequential damages
(b) Impossibility
(c) Expectation interest
(d) Substantial performance
(e) Legally irrelevant
4. An example of true impossibility is
(a) Strict performance
(b) Failure of condition
(c) Illegality
(d) Material breach
(e) Consequential interest
5. Museum schedules a major fundraising dinner, devoted to a famous Botticelli picture, for September 15. Museum then hires Sue Ellen to restore the picture, her work to be done no later than September 14. Sue Ellen is late with the restoration, forcing the Museum to cancel the dinner and lose at least $500,000 in donations. Sue Ellen delivers the picture, in excellent condition, two weeks late. Museum sues.
(a) Museum will win.
(b) Museum will win if, when the parties made the deal, Sue Ellen knew the importance of the date.
(c) Museum will win provided that it was Sue Ellen's fault she was late.
(d) Museum will win provided that it was not Sue Ellen's fault she was late.
(e) Museum will lose.
6. Tara is building an artificial beach at her lakefront resort. She agrees in writing to buy 1,000 tons of sand from Frank for $20 per ton, with delivery on June 1, at her resort. Frank fails to deliver any sand, and Tara is forced to go elsewhere. She buys 1,000 tons from Maureen at $25 per ton, and then is forced to pay Walter $5,000 to haul the sand to her resort. Tara sues Frank. Tara will recover
(a) Nothing
(b) $5,000
(c) $10,000
(d) $15,000
(e) $30,000
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Related Book For  book-img-for-question

Introduction to Business Law

ISBN: 978-1285860398

5th edition

Authors: Jeffrey F. Beatty, Susan S. Samuelson

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