In which of the following situations would a person lack the capacity to enter into a contract? Question 6 options: holding a belief in life on other planets having a tendency to spend too much money having severe mental retardation being depressed after buying a losing lottery ticket Question 7 (Mandatory) (2 points) Kirk lost his watch somewhere in town. He looked everywhere but couldn't find it. His friend Patty is extremely good at finding things. Kirk told Patty, "If you can find my watch, I'll buy you lunch." Three and a half years passed and Patty happened to find the watch at the movie theater. When Patty returned the watch, Kirk didn't even remember talking to her about it and he'd already bought a new watch a long, long time ago. Is Kirk obligated to buy lunch for Patty? Question 7 options: No because Kirk had no use for his old watch Yes because Patty's act is the acceptance that forms the agreement Yes because Kirk never specifically told Patty to stop looking No because the offer expired due to lapse of a reasonable amount of time Question 8 (Mandatory) (2 points) Lorelai needed to get to the airport and asked her friend Luke for help. Luke drove Lorelai to the airport. At the airport, Lorelei thanked Luke and told him that she would give him money for gas when she got back in town. Which of the following would make Lorelai's promise enforceable? Question 8 options: if Luke really needed the money if Luke had driven Lorelai to the airport in the past if Luke knew that Lorelai actually had the money if Lorelai offered the money before Luke agreed to drive Question 9 (Mandatory) (2 points) Lorelai owns a hotel. Lorelai's daughter Rory just graduated from college and is having a hard time finding a job. Lorelai thinks the reason Rory is having no luck is that her hair is dyed every color of the rainbow and looks really messy. Lorelai tells Rory, "If you didn't look like so crazy, you could get a job anywhere, even at my hotel." Rory really likes her look but she decides she'd like a paycheck even better. She gets her hair dyed back to its original color and gets a very professional looking hair style. Rory shows up the next day in a suit ready for work. Which of the following best describes the situation? Question 9 options: Rory formed a unilateral contract by getting her hair done so Lorelai must give Rory a job at the hotel. Lorelai does not have to hire Rory. Her statement about Rory's hair was not a valid offer because it did not communicate an actual promise. Lorelai must hire Rory or reimburse Rory for the cost of getting her hair done. Lorelai does not have to hire Rory. Her statement about Rory's hair was not a valid offer because it was not written down. Question 10 (Mandatory) (2 points) Maggie is going on vacation for two weeks and promises to buy her friend Amelia a new pair of shoes if Amelia will put out Maggie's trash on garbage collection day while Maggie is away. Amelia agrees to do it as long as she remembers. If Maggie comes home to a garbage can full of trash but did not buy any shoes for Amelia, which of the following would be true? Question 10 options: Neither Maggie nor Amelia can claim breach of contract. Maggie can claim for breach of contract against Amelia. Amelia needs to buy Maggie a new pair of shoes. Amelia can claim for breach of contract against Maggie. Question 11 (Mandatory) (2 points) Mrs. Kim owns an antique store. Emily noticed a desk in the store that she wanted to get for her granddaughter. Emily first wanted to measure the space in her granddaughter's room to make sure it would fit. Emily asked Mrs. Kim to hold the desk for 2 days and Mrs. Kim agreed. The next day, Patty came in and offered to buy the desk for $100 more than was listed on the price tag. Must Mrs. Kim wait for Emily to come back or can Mrs. Kim sell the desk to Patty? Question 11 options: Mrs. Kim is obligated to hold the desk because she agreed. Mrs. Kim is only obligated to wait if Emily gave something of value in exchange for the promise to hold the desk. Mrs. Kim is not obligated to hold the desk because she can make a sale for a higher price. Mrs. Kim is obligated to hold the desk because the customer is always right. Question 12 (Mandatory) (2 points) Rory verbally agreed to buy Dean's car for $4,000. Rory paid Dean $4,000 and Dean gave her the car, keys, and signed over ownership to the car. A month later, Dean learned that his state requires contracts for the sale of goods worth $500 or more to be in writing and also that he should have sold his car for much more. Which of the following options best describes the situation? Question 12 options: Dean can rescind the contract on the grounds that it was not in writing as required by the Statute of Frauds. Rory can rescind the contract on the grounds that it was not in writing as required by the Statute of Frauds. The contract cannot be rescinded by either Dean or Rory because it has already been executed. Dean can hire someone to repossess the car. Question 13 (Mandatory) (2 points) Smithers is retiring after working for Springfield International for 20 years. Upon hearing the news of his retirement, the president of the company announces at the annual company picnic that Smithers will receive a bonus of $250,000 for his exceptional services over thepast 20 years when he retires. But upon retiring, Smithers isn't paid the bonus. He decides to sue the company to recover the promised bonus. Which of the following is true of this case? Question 13 options: Smithers will lose because of unjust enrichment Smithers will win because of misrepresentation Smithers will lose because of past consideration Smithers will win because bonuses are legal Question 14 (Mandatory) (2 points) Sookie received a parcel from her aunt in Indonesia. The delivery man asks her to sign an authorization document to receive the parcel. Sookie signed without reading the document because she was in a hurry. However, on the other side of the document are contract terms that transfer all of Sookie's property to the delivery man. This is an instance of ________. Question 14 options: unilateral mistake a binding contract innocent misrepresentation fraud in the execution Question 15 (Mandatory) (2 points) Taylor's Olde Fashioned Soda Shop won the town's Best Business Award. Ever since, Taylor has been very superior about it and placed the trophy in the front window of the shop. Gypsy got very annoyed at having to see the trophy every day and listen to Taylor brag. Gypsy decided that she will steal the trophy as a prank. Gypsy asked Babette for her help. Babette didn't want to get involved but they verbally agreed that Babette will help and in exchange, Gypsy will give Babette's car a tune up. Is Babettte obligated to follow through? Question 15 options: Yes because they made an agreement No because the subject of the contract is illegal Yes because promises are always enforceable No because a tune up is not worth getting arrested for Question 16 (Mandatory) (2 points) Joey needs some photos taken to take to his acting auditions but he doesn't have money to have them taken by a professional photographer. His friend Phoebe offered to take the photos for him as a favor with her new camera and print them free of charge at the copy store where she just started working. She told Joey that she would have them ready before his next audition. Unfortunately, Phoebe is not very good at using her camera or the printer and the photos looked terrible. Joey picked up the photos on his way to his audition and realized he can't use them. If Joey sues Phoebe for $500, the cost of a set of good photos, will he win? Choose the best answer. Question 16 options: No, Joey will not win because there was no consideration. Yes, Joey will win because it was Phoebe's fault. No, Joey will not win because there was no agreement in writing. Yes, Joey will win because they had an agreement. Question 17 (Mandatory) (2 points) The injured party loses the right to sue if the lawsuit is brought after the ________ expires. Question 17 options: privity of contract notice of assignment statute of limitations option contract Question 18 (Mandatory) (2 points) Which of the following constitute a mutual mistake of a material fact that allows the parties to avoid the contract? Question 18 options: Oscar selling his iPhone to Bert and Bert doesn't know how to use an iPhone because he has always an an Android phone Bert selling Oscar a toy car for $1, both of them unaware that it is a valuable collectible worth $1000 Bert agreeing to lease a house to Oscar but Bert thinks Oscar wants to lease his 2-story house but Oscar thinks he is renting a different 3-story house. Bert buying a computer from Oscar without asking any questions or testing if it works Question 19 (Mandatory) (2 points) Which of the following is true of a contract with a person who is so drunk that they have no awareness of their actions? Question 19 options: The contract is binding as long as the competent party did not provide the alcoholic beverages. Both parties are legally obligated to uphold the contract. The contract is void. Only the competent party can enforce the contract. Question 20 (Mandatory) (2 points) Which of the following situations lack consideration? Question 20 options: A 17-year-old buys a used car for $450 and then wants to return it. After looking at sales figures for the last month, a supervisor promises a bonus to the best salesperson but due to budget cuts never pays the bonus. A customer buys an antique watch from a store but later realizes she overpaid and should have done more research. Two students agree to lend each other books for the semester.