QUESTION 1

1. In the context of fraudulent misrepresentation, an opinion is objective and verifiable, whereas a fact is subject to debate.
2. True
3. False

4 points

QUESTION 2

1. Fagin and Gretel agree to hijack a truck carrying a load of almonds. If Fagin later refuses to go through with the crime, Gretel can
2. a.obtain damages in the amount of her partner's share of the illegal profits.b.obtain damages in the amount of her own share of the illegal profits.c.none of the choices.d.enforce the agreement.

4 points

QUESTION 3

1. Oceans Inc., a seafood distributor, agrees to buy from Paul, a commercial fisherman, any "overstock" of fish that Paul catches in excess of his legal limit. This agreement is most likely
2. a.enforceable.b.voidable.c.void.d.quasi.

4 points

QUESTION 4

1. A party to a contract who has no reason to know that the contract is illegal can often obtain restitution on a partially executed contract.
2. True
3. False

4 points

QUESTION 5

1. A contract involving property of any kind must be in writing to be enforceable.
2. True
3. False

4 points

QUESTION 6

1. Quasi contracts are imposed on parties in the interest of fairness and justice.
2. True
3. False

4 points

QUESTION 7

1. If a mistake concerns the quality of the object of the contract, the mistake is one of fact, and the contract normally is enforceable.
2. True
3. False

4 points

QUESTION 8

1. Ray contracts with Spicy Pizza to deliver its products. Later, both parties inform each other that they would like to cancel the contract. Ray and Spicy may rescind
2. a.none of their contract.b.their contract to the extent that it is executory.c.their contract to the extent that it has been executed.d.their entire contract.

4 points

QUESTION 9

1. Painting a garage can constitute "something of legally sufficient value."
2. True
3. False

4 points

QUESTION 10

1. Bowen, the owner of Components Company, pays Denis to obtain a competitor's design patent. Denis keeps the money but does not deliver. Bowen can
2. a.recover from the competitor.b.none of the choices.c.recover from Denis.d.enforce the contract with Denis.

4 points

QUESTION 11

1. One of the requirements of a valid contract is an adequate market for the deal's goods or services.
2. True
3. False

4 points

QUESTION 12

1. Intoxicated, Efron enters a contract for the sale of his business, Freight Dispatch, to Gretel for less than its market value. This contract is enforceable if, at the time,
2. a.Gretel fraudulently induced Efron to become intoxicated.b.Efron's intoxication was purely voluntary.c.Gretel was also intoxicated.d.Efron understood the legal consequences.

4 points

QUESTION 13

1. A contract is an implied contract if the conduct of the parties creates and defines some of the terms.
2. True
3. False

4 points

QUESTION 14

1. Because of the potential for punitive damages, plaintiffs often include a claim for fraudulent misrepresentation in their contract disputes.
2. True
3. False

4 points

QUESTION 15

1. Cathy agrees to sell her Daily Donut shop to Ernie. In the agreement, there is a covenant not to compete that prohibits Cathy from operating a donut shop within a certain distance. If the restriction is unreasonable, a court will most likely
2. a.order Ernie to stop doing business.b.award Cathy damages.c.prohibit both parties from operating donut shops.d.reform the covenant.

4 points

QUESTION 16

1. Anton tells Brooke, who has no knowledge of Shakespearean comedy, that he will tutor her in the subject for $50. As an offer, this is
2. a.effective.b.not effective because Anton's tutoring will be subjective.c.not effective because comedy is not a serious subject.d.not effective because Brooke has no knowledge of the subject.

4 points

QUESTION 17

1. Under a contract with River Valley Farm, Sancho begins grading a terraced hillside for planting. Halfway through the project, Sancho asks for $5,000 over the contract price, claiming an increase in the "cost of doing business." The farm agrees but later refuses to pay. The agreement to pay more is
2. a.unenforceable because the farm's promise was illusory.b.unenforceable because Sancho's performance was a preexisting duty.c.unenforceable because Sancho's request modified the contract.d.enforceable.

4 points

QUESTION 18

1. Big Dig LLC makes an offer to perform an excavation and related tasks for Commercial Development Corporation, but due to a substantial mathematical mistake, significantly underprices the work. Commercial accepts the offer. Data Big's best defenseagainstenforcement of the contract is that Commercial knew
2. a.a bilateral mistake supports the cancellation of a contract.b.the price was below the prices of comparable services.c.a unilateral mistake supports the cancellation of a contract.d.a mistake of value supports the cancellation of a contract.

4 points

QUESTION 19

1. Reed agrees to sell his Sports Equipment store to Taylor. As part of the sale, Reed promises not to open a similar, competing store anywhere. This promise is most likely
2. a.invalid because of the unreasonable terms of area and time.b.valid if both parties are justifiably ignorant of the facts.c.invalid because it is part of a sale of an ongoing business.d.valid because it is part of a sale of an ongoing business.

4 points

QUESTION 20

1. Movers LLC promises to deliver a certain couch to Nora, who promises to pay for the service. If Movers does not perform, it may be required to
2. a.cease business.b.perform a different service.c.pay damages.d.make another promise.

4 points

QUESTION 21

1. The modification of a contract may be fair and equitable in view of circumstances not anticipated by the parties when the contract was made.
2. True
3. False

4 points

QUESTION 22

1. A court usually will enforce a covenant not to compete provided its restrictions are reasonable.
2. True
3. False

4 points

QUESTION 23

1. Ken, a real estate agent, assures Lily that a certain parcel of commercial property fronts on the most highly trafficked street in Metro City. Lily buys the property and then discovers that the street has no more traffic than any other in its vicinity. Lily may recover damages for
2. a.the buyer's mistake.b.the city's undue influence.c.none of the choices.d.the agent's fraudulent misrepresentation.

4 points

QUESTION 24

1. Oscar owns Payroll Company, a bookkeeping service. Oscar pays Ripley $5,000 to steal a list of a competitor's clients. This deal is
2. a.voidable at the option of either party.b.void.c.enforceable.d.voidable at the option of the party having less bargaining power.

4 points

QUESTION 25

1. A minor can enter into any contract an adult can, without exception.
2. True
3. False