QUESTION 11

Macaulay Culkin , a minor, buys a new dirtbike from his local neighborhood bike shop . He uses the bike for several weeks and crashes it, which leaves it in deplorable condition. He then takes the bike back to the neighborhood bike store. The bike store is located in a state in which a duty of restitution is imposed. Macaulay Culkin

	a.	must return the bicycle and pay for the damage.
	b.	cannot return the bicycle unless it can be fully restored.
	c.	is not required to return the bicycle due to his minority.
	d.	can return the bicycle "as is" and avoid further liability.

2 points

QUESTION 12

Stefani Germanotta lost her dog,Benji. In response to losing her dog, Stefani put out a reward for his return.KayleighMcEnanyfinds and returns Benji to Stefani; however,she does not know about the reward when she does.Kayleighcannot recover the reward because she

	a.	did not know of the reward when she found and returned Benji.
	b.	did not confer a benefit on StefaniGermanotta by returning Benji.
	c.	does not need the money.
	d.	returned Benji.

2 points

QUESTION 13

Matthew McConaughey tells John Legend he will provide him with a Roland TR 808 Drum Machineif John does Matthew's chores for a month. Johnpromises to do the chores. Matthew and John have formed

	a.	a unilateral contract.
	b.	a void contract.
	c.	a bilateral contract.
	d.	an unenforceable contract.

2 points

QUESTION 14

Jim Hackett experiences car troubles,so he calls AAA to transport it to Ford's Custom-Repair Shop. Price is not discussed or negotiated, and Jim Hackett and AAA do not sign any documents. Later, AAA sends Jim Hacketta bill. ConsideringJim's obligation to pay the bill, this is

	a.	an implied-in-law contract.
	b.	an implied contract.
	c.	an express contract.
	d.	no contract.

2 points

QUESTION 15

On Monday, Richard Burr tells TruGreenthat he will pay TruGreen $400 if a variety of tasks are completed by Friday. On Wednesday, when TruGreen is more than half done with the work, Burr says that he has changed his mind. These parties had

	a.	a unilateral contract as soon as TruGreen began to perform.
	b.	an expired contract when Burr said that he had changed his mind.
	c.	no contract.
	d.	a quasi-contract when Burr said that he would pay for certain work.

2 points

QUESTION 16

Gretchen Whitmer applied for and received a personal loan from Sun Trust Bank. The interest rate charged by Sun Trust on the loan exceeds the state's maximum. Sun Trust has

	a.	violated the usury laws.
	b.	calculated the optimum rate that the market will bear.
	c.	engaged in a restraint of trade.
	d.	underestimated the risk of the loan's nonpayment.

2 points

QUESTION 17

FUBUand Sean John enter into a contract. In the contract, Sean Jean agrees to deliver hoodieswith Hip-Hop inspired designs printed on themin exchange for FUBU's promise to pay. Sean Jean delivers the hoodies. The contract is

	a.	voidable.
	b.	executive.
	c.	executed.
	d.	executory.

2 points

QUESTION 18

ProfessorFernandezenters into a written agreement with one of his Business Lawstudents.As part of the agreement, he gives his student $20,000in exchange for their agreement to murder his pesky and meddlesome mother-in-law. His student keeps the money without doing anything more.Prof.Fernandezwill be able to recover the$20,000

	a.	if the student never intended to carry out the crime.
	b.	if Professor Fernandez decides to do it himself
	c.	if Professor Fernandezfully complied with the terms of the agreement.
	d.	under no circumstances.

2 points

QUESTION 19

Kendall Jenner enters into a contract to buy a new car one month prior to reaching the age of majority. Not too long after reaching majority, only five weeks later, Kendall Jenner does not take possession of the car, nor does she make payments. Most courts would hold that she had

	a.	ratified the contract.
	b.	disaffirmed the contract.
	c.	rescinded the contract.
	d.	executed the contract.

2 points

QUESTION 20

Justin Timberlakeaccuses NSYNC of breaching their contract. NSYNC responds to this accusation by saying that the group did not have any intention of contracting with Justin Timberlake. The intention of a parties desire to enter into a contract is determined with reference to

	a.	the personal theory of contracts.
	b.	the conscious theory of contracts.
	c.	the subjective theory of contracts.
	d.	the objective theory of contracts.