QUESTION 1

Alfreda files a suit against Horatio claiming that the consideration for their contract is inadequate. The court will most likely NOT examine the adequacy of the consideration provided that

	a.	there is a large disparity in the amount of consideration exchanged.
	b.	something of value passed between the parties.
	c.	the consideration involves the performance of services.
	d.	the consideration is worth less than $100.

4 points

QUESTION 2

Morgan promises to buy illegal digital copies of movies from Nikita, who promises to deliver on October 31. Both Morgan and Nikita are adults. This contract is most likely

	a.	valid and enforceable by both of them.
	b.	voidable at the option of one of them.
	c.	invalid but still enforceable by one of them.
	d.	void and not enforceable by either one of them.

4 points

QUESTION 3

In general, certain terms must be included in contracts to satisfy the requirement of definiteness. Which of the following is an exception to this rule?

	a.	If the contract is oral, not all terms are required to be included.
	b.	If the contract is in writing, not all terms are required to be included.
	c.	Courts can rewrite contracts even if the intent is vague.
	d.	Courts can complete contract to supply missing terms that can be reasonably inferred from past dealings between the parties.

4 points

QUESTION 4

Which of the following is NOT a feature of substantial performance?

	a.	performance in good faith of most, but not all, of the contractual requirements
	b.	performance provides substantially the same benefits as the promised performance
	c.	performance varies from promised performance by minor breaches
	d.	performance varies from promised performance by material breaches

4 points

QUESTION 5

To constitute consideration, the value of whatever is exchanged must be

	a.	precisely adequate.
	b.	practically sound.
	c.	legally sufficient.
	d.	objectively worthy.

4 points

QUESTION 6

Blake, a salesperson for Custom Commercial Kitchens, shows Dylan, a buyer for Eatery Inc., display items in Custom's showroom, stating that any purchased equipment will match the display. This statement is

	a.	an implied warranty of fitness for a particular purpose.
	b.	puffery.
	c.	an implied warranty of merchantability.
	d.	an express warranty.

4 points

QUESTION 7

Under the UCC, if an acceptance to a sales contract having a nonmerchant party includes terms additional to or different from those in the original offer, those terms

	a.	automatically become part of the contract unless the original offer expressly limited acceptance to its terms.
	b.	do not become part of the contract.
	c.	automatically become part of the contract unless the new or changed terms materially alter the contract.
	d.	automatically become part of the contract unless the offeror objects to the new or changed terms within a reasonably period of time.

4 points

QUESTION 8

Wild-Caught Fish Inc. hires Vera as its agent to make a single purchase of a one-day fishing haul, up to a specified number of fish, from a named group of fishing vessels. After the fish are bought, the agency relationship

	a.	terminates by operation of law due to changed circumstances.
	b.	continues until both parties consent to end the agency agreement.
	c.	terminates automatically due to lapse of time.
	d.	terminates automatically due to purpose achieved.

4 points

QUESTION 9

Ray is a delivery driver for Sicilian Pasta Company. Ray's salary, working hours, pickup times, delivery times, and routes are all controlled by the company. Ray is most likely the company's

	a.	independent contractor.
	b.	employer.
	c.	employee.
	d.	agency principal.

4 points

QUESTION 10

Refined Mills orders "Grade A" oats from Sweet Valley Farms to grind and sell to Town Co-op Grocery. Sweet Valley ships "Grade B" grain, which Refined Mills accepts. To recover damages for the nonconformity, Refined Mills must give notice of the breach within a reasonable time to

	a.	Sweet Valley.
	b.	all of the choices.
	c.	Town Co-op.
	d.	the appropriate state government agency.