BUSINESS LAW I

SUMMER III2019PROFESSOR J. ZAVAGLIA

BUSINESS LAWI MID-TERMEXAM

1.AN IMPLIED CONTRACT CAN BEST BE DEFINED AS:

(A)WILL NOT BE RECOGNIZED AS ENFORCEABLE BY THE COURTS

(B)A TRUE FORMOF A FORMAL CONTRACT

(C)THE INTENTIONS OF THE PARTIES AREINFERRED FROM THEIR CONDUCTBY THE COURT AS WELL AS THE CIRCUMSTANCES OF THE CONTRACT

(D)WHICH EXISTS IN THE EYES OF THE LAW, EVEN THOUGH THE PARTIES HAVE NOT IN ANY WAY INTENDED TO FORM THE CONTRACT

2.A CONTRACT THAT IS TOTALLY ILLEGAL IS PROPERLY CALLED:

(A)VOID

(B)VOID, UNLESS THE EXCEPTION IN "D" BELOW IS APPLICABLE

(C)VOIDABLE,I.E. EITHER PARTY MAY ASK TO HAVE IT SET ASIDE

(D)VALID, IF A COURT IS CONVINCED THAT THE PEFORMANCE OF THE CONTRACT WOULD NOT APPRECIABLY HARM EITHER PARTY OR SOCIETY IN GENERAL

3.A VOID CONTRACT IS:

(A)AN ILLEGAL CONTRACT

(B)NO CONTRACT AT ALL

(C)AN ENFORCEABLE CONTRACT

(D)AN EXECUTED CONTRACT

4.A CONTRACT THAT HAS BEEN FULLY PERFORMED BY ALL OF THE

PARTIES IS A(N):

(A)EXECUTORY CONTRACT

(B)ENFORCEABLE CONTRACT

(C)COMPLETED CONTRACT

(D)EXECUTED CONTRACT

5.A CONTRACT THAT RESULTS FROM THE EXCHANGE OF A PROMISE FOR

COUNTER-PROMISE IS CALLED A(N):

(A)UNILATERAL CONTRACT

(B)BILATERAL CONTRACT

(C)EXPRESS CONTRACT

(D)EXECUTORY CONTRACT

6.DOLLAR DAMAGES ARE CONSIDERED INADEQUATE AND SPECIFIC

PERFORMANCE IS CONSIDERED THE PROPER REMEDY WHEN A CONTRACT

FOR THE SALE OF A UNIQUE ITEM IS BREACHED BY THE BUYER.

WHICH ONE OF THE FOLLOWING USUALLY ISNOTCONSIDERED TO BE A

UNIQUE ITEM?

(A)PERSONAL PROPERTY IN GENERAL

(B)ANTIQUES IN GENERAL

(C)REAL ESTATE IN GENERAL

(D)STOCK OF A CLOSELY-HELD CORPORATION IN GENERAL

7.NOMINAL DAMAGES ARE THOSE WHICH:

(A)ARE "NAMED" IN THE CONTRACT - I.E., A SPECIFIC SUM OF MONEY THAT ONE PARTY AGREES TO PAY TO THE OTHER IN THE EVENT THAT HE BREACHES THE CONTRACT

(B)ARE "IN NAME ONLY" - I.E., A SMALL SUM AWARDED TO A PLAINTIFF WHOSE RIGHTS HAVE BEEN INFRINGED UPON AS A RESULT OF THE DEFENDANT'S BREACH OF CONTRACT OR OTHER MISCONDUCT, BUT WHO SUFFERED NO REAL OR ACTUAL LOSS AS A RESULT OF DEFENDANT'S WRONG

(C)ARE AWARDED BY A COURT WHERE A "LIQUIDATED DAMAGES" CLAUSE IN A CONTRACT IS FELT BY THE COURT TO BE EXCESSIVE: THAT IS, NOMINAL DAMAGES ARE THOSE THAT ARE GIVEN IN LIEU OF LIQUIDATED DAMAGES

8.A UNILATERAL CONTRACT IS FORMED BY:

(A)AN ACT FOR A PROMISE

(B)MUTUAL PROMISES TO ACT

(C)A PROMISE TO ACT UPON THE PERFORMING OF AN ACT

(D)THREE OR MORE PARTIES

9.ALL OF THE FOLLOWING ARE ESSENTIAL INGREDIENTS OF A BINDING

PROMISE EXCEPT:

(A)CONSIDERATION

(B)LEGALITY OF OBJECT

(C)MANIFESTATION OF MUTUAL ASSENT

(D)A WRITING

10.WOOTEN HARDWARE, INC. OWNS AN EXTRA LOT ADJACENT TO THE

MAIN STORE AND THE PRESIDENT, MR. GREEN, HAS DECIDED TO

SELL IT.IN RELATION TO THIS HE WROTE THE FOLLOWING LETTER

TO SEVERAL INTERESTED PARTIES.

GENTLEMEN:WE ARE SENDING THIS NOTICE TO SEVERAL

PROSPECTIVE BUYERS BECAUSE WE ARE INTERESTED IN SELLING THE

ONE ACRE LOT ADJACENT TO OUR MAIN STORE DOWNTOWN.IF YOU

ARE INTERESTED,PLEASE CONTACT ME.TO BE SINCERELY

INTERESTED,YOU SHOULD BE THINKING IN TERMS OF AT LEAST

$100,000.

BOB GREEN, PRESIDENT

IN REGARD TO THE LETTER, WHICH OF THE FOLLOWING IS CORRECT?

(A)MR. GREEN MUST SELL THE PROPERTY TO THE HIGHEST BIDDER IF THE OFFER IS OVER $100,000

(B)MR. GREEN'S LETTER DID NOT CONSTITUTE AN OFFER

(C)THE OFFER CANNOT BE LEGALLY WITHDRAWN FOR A STATED PERIOD OF TIME

(D)IF BATES, ONE OF THE PROSPECTIVE BUYERS, WIRES ACCEPTANCE OF THE $100,000, THERE WILL BE A BINDING CONTRACT

11.WHICH OF THE FOLLOWING EVENTS DO NOT TERMINATE AN OFFER "BY

OPERATION OF LAW"?

(A)REVOCATION BY THE OFFEROR

(B)SUBSEQUENT (OR INTERVENING) ILLEGALITY

(C)ADJUDICATION OF INSANITY OF THE OFFEROR

(D)ADJUDICATION OF INSANITY OF THE OFFEREE

12.IF A CONTRACT FOR THE SALE OF GOODS FAILS TO SPECIFY THE

PRICE OF THE GOODS, WHICH OF THE FOLLOWING IS TRUE?

(A)THE CONTRACT WILL BE INVALID BECAUSE SOME OF THE TERMS ARE MISSING

(B)THE CONTRACT WILL BE VALID ONLY IF A SUBSEQUENT AGREEMENT FOR PRICE IS REACHED

(C)IF THE CONTRACT SAYS NOTHING AS TO PRICE, THE PRICE IS A REASONABLE ONE AT THE TIME OF DELIVERY

(D)THE CONTRACT IS VOIDABLE AT THE OPTION OF THE BUYER

13.WITH REGARD TO AN OFFEREE'S REJECTION OF AN OFFER, WHICH

OF THE FOLLOWING IS LEAST CORRECT?

(A)A REJECTION BY THE OFFEREE CAUSES AN OFFER TO TERMINATE

(B)AN OFFEREE WHO REJECTS AN OFFER CAN LATER ACCEPT THE OFFER AND THEREBY BIND THE OFFEROR

(C)AN ATTEMPTED ACCEPTANCE THAT DEPARTS FROM THE TERMS OF THE OFFER IS A REJECTION

(D)AN ATTEMPTED ACCEPTANCE THAT DEPARTS FROM THE TERMS OF THE OFFER IS A COUNTEROFFER

14.THE MIRROR IMAGE RULE IS A DOCTRINE:

(A)FIRST INTRODUCED IN THE UNIFORM COMMERCIAL CODE

(B)THAT REQUIRES OFFERS AND COUNTEROFFERS TO BE MIRRORED REFLECTIONS OF ONE ANOTHER

(C)THAT REQUIRES AN ACCEPTANCE TO CONFORM EXACTLY TO THE TERMS OF THE OFFER

(D)THAT IS NO LONGER APPLICABLE TO CONTRACT LAW

15.AS A GENERAL RULE, THE MODERN LAW REQUIRES ACCEPTANCE TO BE

IN WRITING:

(A)IF THE OFFER IS IN WRITING

(B)IF THE PROPOSED CONTRACT IS A SALES CONTRACT

(C)IF THE OFFER CONTAINS NEW TERMS THAT MIGHT POSSIBLY BE CONSTRUED BY THE OFFEROR TO BE A COUNTEROFFER

(D)A AND B

(E)NONE OF THE ABOVE

16.JAN HAS A LAPTOP SHE WISHES TO SELL.SHE OFFERS TO SELLIT TO GAIL FOR $150.DIANE HEARS ABOUT THE OFFER ANDINFORMS JAN THAT SHE ACCEPTS THE OFFER TO BUY AT $150.WHICH IS CORRECT?

(A)THERE WAS NO OFFER BY JAN TO DIANE

(B)THE OFFER MUST BE KEPT OPEN FOR 30 DAYS

(C)IF GAIL HAD TOLD DIANE OF THE OFFER, THENTHERE WOULD BE A VALID OFFER TO DIANE

(D)THIS OFFER IS COVERED BY THE STATUTE OF FRAUDS BECAUSE IT IS PERSONAL PROPERTY

17.UNLESS THE OFFER STATES OTHERWISE OR A REJECTION HAS BEEN

PREVIOUSLY SENT, ACCEPTANCE IS GENERALLY EFFECTIVE WHEN:

(A)DISPATCHED BY THE OFFEREE

(B)RECEIVED BY THE OFFEROR

(C)SIGNED BY THE OFFEREE

(D)RECEIVED BY THE OFFEREE

18.IF A COURT FINDS, IN A PARTICULAR SITUATION, THAT A VALIDREQUIREMENTS CONTRACT EXISTS, THE RESULT IS THAT:

(A)A CONSIDERATION (OF SOME KIND) EXISTS AND BOTH PARTIES ARE USUALLY BOUND BY THE CONTRACT

(B)THE SELLER IS BOUND BY THE CONTRACT BUT THE BUYER IS NOT (IN VIEW OF THE FACT THAT HIS EXACT REQUIREMENTS ARE NOT KNOWN WHEN THE CONTRACT IS MADE)

(C)THE BUYER IS BOUND BY THE CONTRACT (SINCE THE TERM "REQUIREMENTS" REFERS TO HIS REQUIREMENTS) BUTTHE SELLER IS NOT BOUND BY IT

(D)NO CONSIDERATION IS PRESENT, BUT THE COURT WILL NEVERTHELESS ENFORCE THE CONTRACT BECAUSE OF PUBLIC POLICY CONSIDERATIONS

(E)NONE OF THE ABOVE

19.AN ILLUSORY CONTRACT IS ONE IN WHICH:

(A)CONSIDERATION APPEARS TO EXIST, BUT UPON CLOSER EXAMINATIONIS FOUND TO BE ABSENT

(B)THE CONSIDERATION OF ONE PARTY IS SO INADEQUATE IN VALUE AS TO SUGGEST FRAUD IS PRESENT

(C)CONSIDERATION APPEARS NOT TO EXIST, BUT UPON CLOSER EXAMINATION IS FOUND TO BE PRESENT

(D)A AND C

(E)NONE OF THE ABOVE

20.CONSIDERATION CAN CONSIST OF:

(A)A PROMISE

(B)PERFORMANCE OF AN ACT

(C)NONPERFORMANCE OF AN ACT (I.E. ABSTAINING FROM PERFORMANCE OF AN ACT)

(D)ALL OF THE ABOVE

(E)A AND B

21.A PROMISE WHICH IS UNSUPPORTED BY CONSIDERATION ISNONETHELESS ENFORCEABLE IF:

(A)THE PROMISOR CLEARLY INTENDED TO BE BOUND BY IT WHEN HE MADE IT

(B)THE DOCTRINE OF PROMMISORY ESTOPPEL IS APPLICABLE TO IT

(C)THE PROMISE IS IN WRITING

(D)THE PROMISEE RECEIVED A BENEFIT

(E)NONE OF THE ABOVE

22.THE DOCTRINE OF PROMISSORY ESTOPPEL:

(A)ALLOWS ENFORCEMENT OF A PROMISE IN THE ABSENCE OF ACTUAL CONSIDERATION

(B)REQUIRES ACTUAL CONSIDERATION TO BE APPLICABLE

(C)IS A SUBSTITUTE FOR ACCEPTANCE IN THE FORMATION OF A CONTRACT

(D)IS THE BASIS FOR A FIRM OFFER

23.MARGARET OWNED A BASSET HOUND PUPPY THAT SHOWED GREATPROSPECTS OF DEVELOPING INTO A CHAMPIONSHIP SHOW DOG.BOBPURCHASED THE PUPPY FOR $500 AND IN PAYMENT AGREED TO PAINTMARGARET'S HOUSE.SHORTLY AFTER THE PUPPY WAS DELIVERED TOBOB, IT DEVELOPED A DISEASE WHICH KILLED IT.BOB REFUSEDTO PERFORM THE WORK AS AGREED AND MARGARET SUED.

THE COURT LIKELY WOULD HOLD THAT:

(A)THE AGREEMENT WAS VOIDABLE FOR FRAUD

(B)NO CONTRACT RESULTED BECAUSE OF LACK OF CONSIDERATION

(C)NO CONTRACT RESULTED BECAUSE OF MUTUAL MISTAKE

(D)A VALID CONTRACT WAS FORMED

24."FANG" ELLIS, WHILE INTOXICATED, SIGNS A CONTRACT TOSUPPORT "RAVISHING RUBY" FOR A PERIOD OF 18 MONTHS.INORDER TO DISAFFIRM THE CONTRACT "FANG" MUST PROVE:

(A)THAT IT IS AGAINST PUBLIC POLICY

(B)THE AGREEMENT WAS IMMORAL, THEREFORE ILLEGAL

(C)HE WAS SO INTOXICATED THAT HE DID NOT UNDERSTAND THE NATURE OF THE PURPORTED AGREEMENT

(D)HE IS MARRIED, AND THE CONTRACT IS NOT IN ACCORD WITH A PREEXISTING LEGAL OBLIGATION UNDER THE MARRIAGE CONTRACT

25.WHICH OF THE FOLLOWING BEST DESCRIBES MINORS' CONTRACTS?

(A)INVALID

(B)VOID

(C)VOIDABLE

(D)UNENFORCEABLE

(E)CONDITIONAL

26.IN ORDER FOR A MINOR TO DISAFFIRM A CONTRACT, HE MUSTUSUALLY SHOW - IN ADDITION TO HIS MINORITY - THAT:

(A)THE CONTRACT WAS UNFAIR TO HIM

(B)THE OTHER PARTY HAD HAD MORE BUSINESS EXPERIENCE THAN HE

(C)THE CONTRACT WAS AN ORAL ONE, AND THAT THERE WAS AT LEAST SOME DISAGREEMENT AS TO ITS TERMS

(D)A SPECIFIC STATE STATUTE PERMITS HIM TO DISAFFIRM

(E)NONE OF THE ABOVE

27.DORIS PURCHASED A NEW AUTOMOBILE ON CREDIT WHEN SHE WASSIXTEEN YEARS OLD.TWO DAYS AFTER HER NINETEENTH BIRTHDAYSHE SOUGHT TO RESCIND HER OBLIGATION TO MAKE FURTHERPAYMENTS.ASSUMING THAT EIGHTEEN IS THE AGE OF MAJORITY,THE CAR DEALER WOULD:

(A)BE ABLE TO ENFORCE HER OBLIGATION SINCE DORIS HAD RATIFIED THE CONTRACT

(B)NOT BE ABLE TO ENFORCE HER OBLIGATION SINCE DORIS HAD NOT RATIFIED THE CONTRACT

(C)BE ABLE TO ENFORCE HER OBLIGATION SINCE THE CAR DEALER WAS A COMPETENT PARTY AT ALL TIMES

(D)NOT BE ABLE TO ENFORCE HER OBLIGATION SINCE DORIS DID NOT RATIFY THE CONTRACT PRIOR TO HER EIGHTEENTH BIRTHDAY

28.AN EXCULPATORY CLAUSE IS A PROVISION OF CONTRACT THAT:

(A)REQUIRES EXTRA PROTECTION BY ONE PARTY

(B)EXCLUDES AN OPTION CONTRACT

(C)DISCLAIMS LIABILITY

(D)IS NEVER UPHELD BY THE COURTS

29.EXCULPATORY CLAUSES IN BAILEES' CONTRACTS ARE USUALLY HELDTO BE:

(A)ILLEGAL, IF THE COURT FEELS THAT THEY WERE NOT PROPERLY COMMUNICATED TO THE BAILOR

(B)ILLEGAL - EVEN IF THEY ARE PROPERLY COMMUNICATED TO THE BAILOR - IF THEIR TERMS PURPORT TO FREE THE BAILEE FROM LIABILITY ARISING OUT OF THE BAILEE'S NEGLIGENCE

(C)LEGAL, IF PROPERLY COMMUNICATED TO THE BAILOR (EVEN IF THEY PURPORT TO FREE THE BAILEE FROM LIABILITY ARISING OUT OF THE BAILEE'S NEGLIGENCE)

(D)A AND C

30.STATUTES INVOLVING USURY:

(A)ARE ILLEGAL

(B)LIMIT THE AMOUNT OF INTEREST THAT MAY BE CHARGED ON LOANS

(C)CAN ONLY BE FEDERAL STATUTES

(D)CAN ONLY BE STATE STATUTES

31.ROGER EVANS, A REAL ESTATE BROKER LICENSED IN KANSAS,HELPED THOMAS SELL SOME LAND LOCATED IN MISSOURI.IF ROGERIS NOT A LICENSED BROKER IN MISSOURI, HE:

(A)CANNOT COLLECT A COMMISSION SINCE HE DID NOT REPRESENT THE BUYER

(B)CAN COLLECT A COMMISSION SINCE HE RENDERED A VALUABLE SERVICE

(C)CANNOT COLLECT A COMMISSION SINCE THE LICENSING LAW IS VIOLATED

(D)CAN COLLECT A COMMISSION SINCE HE IS LICENSED IN A STATE THAT BORDERS WITH MISSOURI

32.DANDY, A CONSUMER OF FINE CLOTHES, PROMISED TO PAY $1,400TOALFRED WHO PROMISED TO MAKE A BUSINESS SUIT FOR DANDY.IF ALFRED HAS COMPLETED THE SUIT BUT DANDY HAS NOT PICKEDITUP OR PAID ANY MONEY, WHICH OF THE FOLLOWING IS THE MOSTACCURATE DESCRIPTION OF THIS CONTRACT? IT IS A:

(A)UNILATERAL, UNENFORCEABLE, IMPLIED-IN-FACT CONTRACT

(B)UNILATERAL, VALID, QUASI-CONTRACT

(C)BILATERAL, VOIDABLE, EXPRESSED EXECUTORY CONTRACT

(D)BILATERAL, VALID, EXPRESSED CONTRACT WHICH IS PARTIALLY EXECUTED AND PARTIALLY EXECUTORY

33.A CONTRACTUAL AGREEMENT MAY BE EXPRESSED IN WRITING, OR ITMAY BE ORALLY STATED.IN THE ALTERNATIVE, AN IMPLIED-IN-FACT CONTRACT:

(A)IS CREATED WHEN THE PARTIES MANIFEST THEIR AGREEMENT BY CONDUCT RATHER THAN BY WORDS

(B)IS BASICALLY THE SAME THING AS A CONTRACT IMPLIED-BY-LAW

(C)IS BASICALLY THE SAME THING AS A QUASI-CONTRACT

(D)IS BASICALLY THE SAME THING AS AN INVALID CONTRACT

34.ACTIONABLE FRAUD CAN BE DEFINED AS REQUIRING ALL THEFOLLOWING ELEMENTS EXCEPT FOR:

(A)KNOWLEDGE OF THE MISREPRESENTATION OF A MATERIAL FACT BY THE SPEAKER

(B)ACCURATE REPRESENTATION OF A MATERIAL FACT

(C)JUSTIFIABLE RELIANCE

(D)INJURY

35.IF A PERSON CAN PROVE THAT HE WAS HONESTLY MISTAKEN AS TOTHE TERMS OF A CONTRACT THAT HE HAS MADE, EVEN THOUGH ITWAS NOT APPARENT TO THE OTHER PARTY, AS A GENERAL RULE HE:

(A)CAN RESCIND THE CONTRACT

(B)CANNOT RESCIND THE CONTRACT

(C)CAN RESCIND THE CONTRACT IF HE CAN SHOW THAT THE MISTAKE WAS NOT THE RESULT OF NEGLIGENCE ON HIS PART

(D)NONE OF THE ABOVE

36.WHICH OF THE FOLLOWING BEST DESCRIBES DURESS?

(A)APPLICATION OF PHYSICAL FORCE THAT CAUSES ANOTHER TO MAKE A CONTRACT HE OTHERWISE WOULD NOT HAVE MADE

(B)THE INDUCING OF FEAR IN ONE PERSON BY ANOTHER, THROUGH THE LATTER'S USE OF FORCE OR THREAT TO USE FORCE, INDUCING THE FORMER TO MAKE A CONTRACT HE OTHERWISE WOULD NOT HAVE MADE

(C)A THREAT TO BREAK AN EXISTING CONTRACT THAT CAUSES THE OTHER PARTY TO DO SO

37.UNDUE INFLUENCE IS GENERALLY CONSIDERED TO BE:

(A)WHERE ONE PARTY NAGS THE OTHER PARTY INTO ENTERING A CONTRACT

(B)WHERE ONE PARTY DOMINATES THE OTHER AND THE LATTER'S VOLITION ACTUALLY IS DESTROYED

(C)ONE PARTY THREATENS TO BRING SHAME ON THE LATTER PARTY

(D)NONE OF THE ABOVE

38.THE STATUTE OF FRAUDS REQUIRES ALL OF THE FOLLOWING TYPES

OF CONTRACTS TO BE IN WRITING EXCEPT FOR CONTRACTS:

(A)TO BE LIABLE FOR ANOTHER PERSON'S DEBTS

(B)INVOLVING TITLE TO REAL PROPERTY

(C)FOR THE SALE OF GOODS PRICED AT $500 OR MORE

(D)THAT CANPOSSIBLYBEPERFORMED WITHIN ONE YEAR FROM THE DATE IT IS MADE

39.A QUESTION ARISES AS TO WHETHER A PARTICULAR ORAL CONTRACT

FALLS WITHIN THAT PROVISION OF THE STATUTE OF FRAUDSREQUIRING CONTRACTS TO BE IN WRITING THAT "ARE NOT TO BEPERFORMED WITHIN ONE YEAR FROM THE MAKING THEREOF".

(A)UNDER THE TERMS OF THE CONTRACT, WAS IT POSSIBLE, UNDER ANY CIRCUMSTANCES, FOR THE CONTRACT TO HAVE BEEN FULLY PERFORMED WITHIN ONE YEAR?

(B)DID THE PARTIES, AT THE TIME OF MAKING THE CONTRACT, APPARENTLY AND REASONABLY INTEND THAT FULL PERFORMANCE WOULD HAVE OCCURRED WITHIN ONE YEAR?

(C)UNDER THE TERMS OF THE CONTRACT, WAS IT POSSIBLE, UNDER ANY CIRCUMSTANCES, THAT PERFORMANCE MIGHT HAVE BECOME ILLEGAL?

40.AS A GENERAL RULE, AN ORAL CONTRACT THAT IS REQUIRED BY THE

STATUTE OF FRAUDS TO BE IN WRITING IS:

(A)ILLEGAL

(B)UNENFORCEABLE

(C)CONTRARY TO PUBLIC POLICY

(D)VOIDABLE

(E)VOID

41.ON SEPTEMBER 15, TAYLOR OFFERS TO SELL A TRACT OF LAND TOSMITH FOR $300,000.THE OFFER STATES THAT ACCEPTANCE MUSTBE RECEIVED BY TAYLOR ON OR BEFORE SEPTEMBER 30.UNDER THECIRCUMSTANCES, THE OFFER----

(A)MAY NOT BE WITHDRAWN PRIOR TO SEPTEMBER 30

(B)IS VALIDLY ACCEPTED IF MAILED AND POSTMARKED

SEPTEMBER 30

(C)MAY BE WITHDRAWN AT ANY TIME

(D)DOES NOT COME UNDER THE STATUTE OF FRAUDS

42.SELECT THE MOST CORRECT STATEMENT

(A)WHEN TWO PARTIES HAVE ENTERED INTO A WRITTEN CONTRACT AND THEY SUBSEQUENTLY ORALLY AGREE TO ALTER THE TERMS OF THE WRITTEN CONTRACT, THE ORAL AGREEMENT WILL BE ADMISSIBLE IN EVIDENCE

(B)WHEN TWO PARTIES, DURING THE NEGOTIATIONS LEADING TO A WRITTEN CONTRACT, ORALLY AGREE THAT THE CONTRACT SHALL NOT BE BINDING ON EITHER PARTY UNLESS A SPECIFIED EVENT HAPPENS, THE ORAL AGREEMENT WILL BE INADMISSIBLE IN EVIDENCE BECAUSE OF THE STATUTE OF FRAUDS

(C)IF A PARTY WISHED TO PROVE THAT HE HAD BEEN INDUCED TO ENTER INTO A CONTRACT BY REASON OF FRAUDULENT REPRESENTATIONS ORALLY MADE, THIS EVIDENCE WOULD BE INADMISSIBLE IN EVIDENCE

43.IN AN ASSIGNMENT:

(A)CONSIDERATION IS REQUIRED

(B)THE CONTRACT MUST BE IN WRITING

(C)THE CONSENT OF THE OTHER PARTY ALWAYS IS REQUIRED

(D)NO PARTICULAR FORMALITY IS REQUIRED

44.WHEN AN ASSIGNMENT IS MADE AS A GIFT, THE THIRD PARTY IS

CALLED:

(A)CREDITOR BENEFICIARY

(B)DONEE BENEFICIARY

(C)INCIDENTAL BENEFICIARY

(D)LUCKY

45.WHENEVER AN ASSIGNMENT TAKES PLACE, THE ASSIGNEE ACQUIRES:

(A)GREATER RIGHTS THAN THOSE POSSESSED BY THE ASSIGNOR

(B)NO GREATER RIGHTS THAN THOSE POSSESSED BY THE ASSIGNOR

(C)THE SAME RIGHTS AS THOSE POSSESSED BY THE ASSIGNOR EXCEPT THE RIGHT TO FURTHER ASSIGNMENT

(D)NONE OF THE ABOVE

46.SELECT THE ANSWER THAT IS MOST ACCURATE WITH RESPECT TOTERMINOLOGY USED IN ASSIGNMENT CASES:

(A)IN A BILATERAL CONTRACT EACH PARTY IS AN OBLIGOR (WHO IS ENTITLED TO RECEIVE PERFORMANCE OF ANOTHER) AND AN OBLIGEE (WHO HAS AN OBLIGATION TO PERFORM)

(B)AN OBLIGEEDELEGATES RIGHTS, AND AN OBLIGORDELEGATES DUTIES

(C)THE TERM ASSIGNMENT MAY MEAN A TRANSFER OF A CONTRACTUAL RIGHT, OR IT MAY MEAN A TRANSFER OF BOTH RIGHTS AND DUTIES

(D)THE PERSON MAKING THE TRANSFER IS CALLED THE ASSIGNEE, AND THE ONE RECEIVING THE TRANSFER IS CALLED THE ASSIGNOR

47.IF A CONTRACT IS DRAWN UP THAT INDICATES THAT THE PROMISESMADE BY THE PARTIES ARE NOT TO BE PERFORMED UNTIL ASPECIFIEDEVENT TAKES PLACE, THAT EVENT IS CALLED:

(A)A CONDITION SUBSEQUENT

(B)AN EXPRESS QUALIFICATION

(C)A CONDITION PRECEDENT

(D)NONE OF THE ABOVE

48.IF A CONTRACT CONTAINS EITHER AN EXPRESS OR IMPLIEDCONDITION SUBSEQUENT, AND IF THE SPECIFIED CONDITIONTHEREAFTER DOES OCCUR, THIS MEANS THAT BOTH PARTIES:

(A)MUST NOW GO AHEAD AND PERFORM THEIR OBLIGATIONS

(B)ARE NOWFREED OF THEIR OBLIGATIONS UNDER THE CONTRACT

(C)ARE NOW FREED OF THEIR OBLIGATIONS IF-AND ONLY IF-THEY MUTUALLY AGREE TO CANCEL THE CONTRACT

49.CONDITIONS ARE VERY IMPORTANT IN DETERMINING WHEN ACONTRACTING PARTY'S PERFORMANCE ISREQUIRED.TYPES OFCONDITIONSINCLUDE ALL OF THE FOLLOWING EXCEPT:

(A)CONDITIONS PRECEDENT

(B)CONDITIONS RELEVANT

(C)CONDITIONS CONCURRENT

(D)CONDITIONS SUBSEQUENT

50.X, AN INTERIOR DESIGNER, AGREES TO DECORATE Y'S LIVING ROOMFOR A SPECIFIED PRICE, WITH THE CONTRACT PROVIDING THAT XGUARANTEES Y'S "TOTAL SATISFACTION" WITH THE JOB.WHEN THEWORK IS DONE, Y CLAIMS HE IS NOT SATISFIED.IN SUCH ACASE:

(A)IF THE COURT FEELS THE CONTRACT WAS ONE ESSENTIALLY INVOLVING SUBJECTIVE MATTERS, SUCH AS Y'S PERSONAL COLOR LIKES AND DISLIKES, AND IF Y'S DISSATISFACTION IS GENUINE, Y MAY ESCAPE LIABILITY TO X

(B)IF THE COURT FEELS THAT A REASONABLE MAN WOULD HAVE BEEN SATISFIED WITH X'S PERFORMANCE, EVEN THOUGH IT ESSENTIALLY INVOLVED SUBJECTIVE MATTERS AS IN (A) ABOVE, Y WILL PROBABLY BE HELD LIABLE TO X

(C)IF THE COURT FEELS THE CONTRACT WAS ONE ESSENTIALLY INVOLVING MATTERS OF UTILITY OR MERE MECHANICAL FITNESS (RATHER THAN SUBJECTIVE MATTERS), Y WILL PROBABLY BE HELD LIABLE EVEN IF HE IS PERSONALLY DISSATISFIED AND EVEN IF A REASONABLE MAN WOULD BE DISSATISFIED WITH X'S WORK

(D)B AND C

(E)A AND B

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