21.The element of causation has two tests.One for actual cause and one for proximate cause -- respectively, theBut fortest and theForeseeabilitytest.

Group of answer choices

True

False

22.Edward is cited for texting after his car rear-ends the car in front of him.He will be liable based on negligenceper se.

Group of answer choices

True

False

23.In a negligence action if the injury to plaintiff was unforeseeable plaintiff will not recover from the defendant.

Group of answer choices

True

False

24.Sparks flew from plaintiff's hair dryer when she turned it on but she continued to use it until it caught fire and burned her scalp.She sues Target where she bought the hair dryer for strict liability.Target would be liable in damages to her unless it proves the affirmative defense of assumption of the risk.

Group of answer choices

True

False

25.Comparative negligence is a defense to fraud.

Group of answer choices

True

False

26.Institutional lenders like credit unions and banks are exempt from usury laws.

Group of answer choices

True

False

27.Mutual assent is comprised of two contractual elements: offer and acceptance.

Group of answer choices

True

False

28.Before parties make a contract they have no contractual rights or duties between them.After making the contract their rights and duties are limited to the promises or actions agreed to.

Group of answer choices

True

False

29.Walter pays Ellen $50 to hold onto 6 rare wines that he may or may not buy within two months for $3,400.Two contracts between Walter and Ellen are identified here.One is an option contract.The consideration for the option contract is $50 from Walter in exchange for Ellen holding onto the rare wine for two months.

Group of answer choices

True

False

30.Express contracts can be written or oral.Implied contracts are based on conduct.

Group of answer choices

True

False

31.Sale contracts require mirror image acceptance of offers.

Group of answer choices

True

False

32.The maximum a firm offer between merchants can remain open is 100 days.

Group of answer choices

True

False

33.Donald agreed to buy a car to be delivered to his nephew.The nephew is a third party beneficiary of the purchase and sale contract.

Group of answer choices

True

False

34.Phil owes Jack $200.Dave owes Phil $100.Phil pays Jack $100 and and asks Dave to pay Jack the $100.If Dave doesn't pay Jack the other $100, Phil is till obligated to pay it.

Group of answer choices

True

False

35.Emily owes Bank of America (BofA) $180,000 on her home loan.BofA assigns the loan to Chase and Chase in turn assigns the loan to Wells Fargo.Neither Chase nor Wells Fargo gives a notice of assignment to Emily.She makes her next monthly payment to BofA.Emily is correct to pay BofA until she gets a notice of assignment.BofA must return Emily's payment to her or make arrangements to forward the payment to Wells Fargo.In no event would it be proper for Wells Fargo to penalize Emily for non-payment.

Group of answer choices

True

False

36.Frank owes his bookie $11,000.Frank refuses to pay.His bookie sues him.The court will find Frank liable in damages to the bookie for $11,000.

Group of answer choices

True

False

37.Marwick Corporation in Alabama has several phone calls with Jaime a computer expert and tells him if he comes to Mobile he will be the number two person in tech for the next two years and the company will pay him $175,000 a year.Jaime says OK and moves to Mobile.The company makes him the number six person and says it can only pay $130,000.Neither side signed any documents and everything was oral.Jaime has a cause of action based on promissory estoppel.

Group of answer choices

True

False

38.Evelyn agrees without a written contract to buy and pick $2,500 of her neighbor's tomatoes from a marked-off section of her neighbor's land.When the tomatoes are sufficiently ripe Evelyn and her family go pick the tomatoes.Half way through the picking the neighbor tells her to stop because the agreement violated the statute of frauds.The neighbor is correct that the agreement violated the statute of frauds but Evelyn can keep the picked tomatoes and pay $1,250.

Group of answer choices

True

False

39.Mistake or fraud in the formation of a contract is grounds for rescission.

Group of answer choices

True

False

40.Undue influence in the formation of a contract indicates no meeting of the minds.

Group of answer choices

True

False