16. Tamika promises to pay her personal secretary William a $10,000 bonus in consideration of the work William has provided over the last year. Tamika never makes the payment. If William sues her to enforce the promise, the promise

Group of answer choices

is not enforceable because the consideration given by the secretary was in the past.

will be enforceable for the entire $10,000.

will not enforceable because the failure to pay is an unforeseen difficulty.

is enforceable to the extent of what William's services were actually worth.

17. Rehab Center signs an agreement with Savers 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. Rehab's best argument for avoiding payment to Savers is that

Group of answer choices

d. the specific subject matter of the contract has been destroyed.

performance of the contract is commercially impracticable.

the law has rendered performance of the contract illegal.

payment of the loan would force Rehab into bankruptcy.

18. Properties Inc. and Land Corp. sign a contract agreeing to pay commission to Properties Inc. for the sale of a property. If the contract has all the requirements necessary for one of the parties to enforce it in court, then it is:

Group of answer choices

an inherent contract

an unenforceable contract

a voidable contract

a valid contract

19. Beef Inc. signs a contract in which it agrees to buy a certain number of cows from Red Meat Ranch each day. Red Meat Ranch sends the first delivery six days later than the contract required. Red Meat Ranch knows that Beef Inc. loses a percentage of profit for every day that they don't have beef to sell. Beef Inc. sues Red Meat Ranch and asks for consequential damages. These are a type of damages designed to:

Group of answer choices

provide Beef Inc. the price under the contract for all the cattle

establish, as a matter of principle, that Red Meat Ranch acted wrongfully.

provide Beef Inc. with funds for a foreseeable loss beyond the contract.

punish Rd Meat Ranch and deter others from similar acts.

20. Funmi buys an ice-cream shop from Claudia. In their purchase contract, Funmi makes sure to include a covenant not to compete provision that says Claudia will not open another ice-cream shop within a 35 mile radius. A year later, Claudia decides to open a clothing shop 20 miles away and challenges the validity of that provision. If the court says the 35 mile limit is unreasonable, the court will probably

Group of answer choices

order Claudia to stop doing business.

reform the covenant and allow Claudia to open another ice cream store.

award Funmi damages equal to the speculative profit of a closer store.

prohibit both parties from opening ice cream stores.

21. Jason signs a covenant not to compete with his employer, Frozen Yogurt, Inc. The covenant will be enforced if it

Group of answer choices

None of the other answers is correct

does not require either party to obtain a business license

is reasonable with respect to geographic area and duration.

relieves the employer from liability for any injury to Jason.

22. Drainage & Irrigation Equipment, Inc., contracts to sell its assets to Earth & Sky Aquatic Corporation. Before either party has performed, rescission of this contract requires

Group of answer choices

a novation

an accord and satisfaction

a settlement agreement

a mutual agreement to rescind.

23. Oxley contracts to buy a pizza oven from Restaurant Supplies Warehouse (RSW) for $2,500, but RSW fails to deliver. Oxley buys the appliance else-where for $3,500. Oxley's measure of total damages is

Group of answer choices

consequential damages only.

$1000 only

$0

$1,000 only

24. Jose enters into a contract with Sally's Transportation to work as a driver. Under the plain meaning rule, if the contract's writing is clear and unequivocal, the meaning of the contract terms must be determined from

Group of answer choices

any relevant evidence existing in addition to the contract.

the later testimony of the parties.

only the language in the contract

only evidence not contained in the document.

25. Disaffirmance is the legal avoidance, or setting aside, of a contractual obligation.

Group of answer choices

True

False

26. Coffee Brokers, Inc., offers to buy Dining Company's coffee-roasting services for a certain price. Dining responds that the price is too low and thereby rejects the offer. Coffee Broker's original offer is

Group of answer choices

valid until Interstate revokes the offer.

valid for a reasonable time to give Interstate a "second chance."

terminated

valid for the period of time prescribed by a state statute.

27. Danilo agrees in a written contract to sell eleven tons of scrap metal to Steel & Metal Corp. for $900 each ton. at $500 per ton. After they sign, there is an unforeseen shortage of the metal required under the contract. It becomes impossible for Danilo to fulfill the contract for less than $6000 each ton. Danilo does not deliver as promised and Steel & Metal Corp. sue him for breach of contract. Danilo's best defense would be to say:

Group of answer choices

the law has rendered performance of the contract illegal.

performance of the contract is commercially impracticable.

the specific subject matter of the contract has been destroyed.

procuring the metal would force Danilo into bankruptcy.

28. Maya tries to start her new car with no success. She yells that she will sell the car to anyone for $10. Nero, a passerby who owns Nero's Motors, hands Maya $10. This is

Group of answer choices

not a valid acceptance because Nero is only passing by.

a valid acceptance because Maya is seriously frustrated.

not a valid acceptance because Maya did not seriously intend to sell.

a valid acceptance because Nero is a professional dealer.

29. Nora buys a trumpet on a payment plan from Musical Instruments, Inc. When she can't make the payments, Lewis tells a representative of Musical Instruments, Inc., that he will pay for Nora's trumpet if she does not. Lewis does not secure any personal benefit for this promise. This promise is enforceable as a contract

Group of answer choices

only if Nora agrees to it.

All of the other answers are correct

only if the value of the trumpet is more than $500.

only if it is in writing.

30. Stephanie enters into a contract to work as a lifeguard at Tim's Water Park for the summer in exchange for a weekly paycheck and free admission to the park's attractions. If Stephanie works the entire summer and Tim's provides her paychecks and free admission, the duties have been:

Group of answer choices

avoided

breached

performed

rescinded