QUESTION 43

Fred says to Barney; I will sell you my entire Rock collection for $400.00. If I don't hear from you by Tuesday, I will assume you will buy it. Barney says "O.K. it's a deal". Barney does not contact Fred after that. The contract is enforceable on Tuesday by Fred and Barney must pay for the rock collection.

True

False

2 points

QUESTION 44

Jimmy goes on to the internet a uses a search engine called "Hoople". Hoople is incorporated in California. He clicks on the radio button that says "I agree to the terms of use". However he does not actually read those terms. If he wants to sue Hoople in New York which is true:

	a.	He cannot sue Hoople in New York, if the terms of use says he can only sue in California.
	b.	He cannot sue Hoople in New York, because Hoopleis incorporated in California
	c.	He can sue Hoople in New York if he proves to the court that he did not read the terms of use
	d.	He can sue Hoople in New York no matter what the terms of use say because Hoople does business over the internet in New York

2 points

QUESTION 45

Carmine drafts a contract to sell his house to George. George signs the contract but he changes one clause to state that he will also get the patio furniture

	a.	This is a valid offer and acceptance and a contract has been formed
	b.	This a valid offer and acceptance and a contract for the sale of house, with out the patio furniture, has been formed
	c.	This is not a valid offer and acceptance because you can never change the terms of the existing agreement
	d.	This is not a valid offer and acceptance because of the mirror image rule

2 points

QUESTION 46

Arthur holds an auction of a rare painting with reserve. He opens the bidding at $1,000. Adele bids $1,500. Arthur changes his mind before the auctioneer says "sold". Which of the following statements is correct:

	a.	Arthur must sell the painting to Adele because she bid more than the openingbid
	b.	Arthur must sell the painting to Adele because the offer is accepted the moment Adele offers $1,500
	c.	Arthur does not have to accept the bid because $1,500 is too little money for a rare painting
	d.	Arthur can change his mind any time before the auctioneer calls out "sold"

2 points

QUESTION 47

The only form of valid consideration in a contract is money

True

False

2 points

QUESTION 48

Hugo Boss, asks his employee Pee Wee Herman to buy 50 boxes of Girl Scout cookies from his daughter. He agrees to do so. Pee Wee

	a.	cannot rescind the contract because 50 boxes is not an unreasonable amount of cookies.
	b.	cannot rescind the contract because he is an adult and Boss did not hold a gun to his head.
	c.	can rescind the contract because he felt pressured to buy the cookies because Hugo was his boss and this is considered undue influence
	d.	can rescind the contract because he is not a girl scout.

2 points

QUESTION 49

Liquidated damages are most likely to be upheld when actual damages are difficult to determine in advance and the amount of liquidated damages is such that they are not considered a penalty.

True

False

2 points

QUESTION 50

Jack enters into a contract with Bill to buy a small piece of land for $400.00. The contract does not have to be in writing.

True

False