QUESTION 1

1. Johnson is a volunteer fireman for Prince George's County.One evening, he responds to an alarm at a residence.Outside the house, Bob grabs Johnson by the shoulders and says:My little daughter is in the house.Please save her!I'll pay you $20,000.00 if you get her out alive!Johnson bravely rushes into the burning house and rescues the little girl.The next day, Johnson finds Bob and asks for his check.Bob refuses to pay.Under these facts:
2. A.Johnson will lose based on the theory of preexisting duty.
3. B.Johnson will lose based on the theory of past consideration.
4. C.Johnson will be awarded the money based on the theory of ordinary contract law.
5. D.Johnson will be awarded the money based on the theory of necessity.

QUESTION 2

1. Eintz Corporationhired Jose to bribe a foreign government official into awarding a $3 million contract toEintz.Eintzgave Jose $10,000 in cash to make the bribe payment and $2,000 for Jose's efforts. Instead of paying the bribe, Jose pocketed all of the money.IfEintzsues Jose,Eintzwill:
2. A.Be able to recover the $12,000.
3. B.Be able to recover the $3 million lost on the contract.
4. C.Be able to recover the $2,000 but not the $10,000.
5. D.Not be able to recover the$12,000.

QUESTION 3

1. Walter worked nights as a clerk in a fast-food store.On his last work shift, Walter's boss told him,"I'm really grateful for the year that you have worked here.I am going to give you a bonus of $10,000 in your last paycheck."When Walter got his last paycheck, there was no bonusIf Walter sues, the likely result will be:
2. A.Walter will win, as the promise is enforceable.
3. B.Walter will lose, as he gave no consideration.
4. C.Walter will lose unless the promise was in writing.
5. D.Walter will win, as no consideration is required to modify an employment contract.

QUESTION 4

1. Nella offers to sell her crop of strawberries, which have just been picked, toMorgan';s Market.Since she does not specify a time limit for acceptance,Morganscan accept the offer the following week, as long as Nella has not revoked it.
2. True
3. False

QUESTION 5

1. What is NOT required to establish promissory estoppel?
2. A.A promise made by the defendant.
3. B.A promise made by the plaintiff in response to the defendant's promise.
4. C.Reliance on the defendant's promise.
5. D.Enforcing the promise is the only way to avoid injustice.

QUESTION 6

1. Parol evidencerefers to anything (other than the written contract itself) that was said, done, or written before or as the parties signed the contract.
2. True
3. False

QUESTION 7

1. When Olga asks Sven if he wishes to sell his Harley motorcycle, he replies that he would not sell it"for less than $2,000."Olga replies,"I accept,"and hands him $2,000.A contract exists.
2. True
3. False

QUESTION 8

1. On January 8, Quastrar, Inc. sent Hylavian Company a letter offering to sell $10,000 in restaurant supplies.On January 18, Hylavian mailed a letter to Quastrar accepting the offer.Quastrar received the acceptance letter on January 20.On January 17, Quastrar sent a letter revoking the offer.Hylavian received this letter on January 21.A contract between Quastrar and Hylavian:
2. A.Was not formed because the revocation was effective before the acceptance was sent.
3. B.Was not formed because the revocation was effective before the acceptance was received.
4. C.Was formed on January 18.
5. D.Was formed on January 20.

QUESTION 9

1. Roger, a minor, buys a stereo fromTuneland, Inc.Roger uses the stereo for a few months, returns it toTuneland, and demandfs his money back.In a majority of states, Roger may return the stereo and he does not have to pay for the use of the stereo or the damages.
2. True
3. False

QUESTION 10

1. John owns a thoroughbred horse namedPrince Charmingthat just ran in the Kentucky Derby.Prince Charmingcame in last, much to John's frustration and embarrassment.John exclaims in a loud voice,"I'm selling that damn horse to the first person who hands me $100 bucks."John has:
2. A.Made an offer to anyone within hearing distance and will be bound by his offer to the first person who produces $100.
3. B.Made a firm offer and will be bound by his offer for a reasonable period of time.
4. C.Made an acceptanvce to the first person who van produce $100.
5. D.Not made an offer because under the circumstances a reasonable person would not conclude that John had intent to make an offer.