Take Test: SECOND TEST - LEB Fall 2017 - 17SP Legal Env ... Question 53

1. When parties fail to expressly agree on the terms of a sales contract,

   	a.	the contract is automatically void.
   	b.	the contract will fail if the court finds that the parties are acting as though they have a contract and it is impossible to point to a particular moment in time when the contract was created.
   	c.	the contract will not be enforceable under the Uniform Commercial Code (UCC).
   	d.	the contract will not fail if the court finds that the parties intended to make a contract and that their agreement is complete enough to allow the court to reach a fair settlement of their dispute.

1 points

Question 54

1. Beck tells his mom that he is thinking of selling his vintage coupe to his neighbor, Sam, for $100. Beck's mom calls Sam and tells him about her conversation with Beck. Sam then calls Beck and tells him that he accepts his offer. Under these circumstances, _____.

   	a.	this is a contract
   	b.	the offer has been conditionally tendered
   	c.	the offer has not been communicated
   	d.	the offer violates the UCC's rule against third-party interveners in quasi contracts

1 points

Question 55

1. Bob, a merchant, makes an offer to Linda, another merchant, to buy 1,000 of her widgets in a signed letter containing all necessary terms of the offer. The letter states that Bob will keep the offer open for three weeks from the day the offeree receives it. One week later, Bob writes another letter to Linda attempting to revoke his offer. Linda writes a letter to Bob accepting Bob's original offer before she receives his revocation. Which of the following statements is true of this situation?

   	a.	Linda's acceptance is effective and a contract is created.
   	b.	Bob's revocation is effective and no contract is created.
   	c.	Promissory estoppel prevents the formation of a contract in this situation.
   	d.	The offer cannot be revoked since it is an option offer.

1 points

Question 56

1. Which of the following is true about the "Battle of the Forms" of the Uniform Commercial Code?

   	a.	Timely expression of acceptances creates a contract even if it states additional terms on points the offer did not address.
   	b.	Timely expression of acceptances creates a contract only if it includes terms that are identical to those stated in the offer.
   	c.	If one of the parties is a merchant, the additional terms in the offeree's form are included in the agreement.
   	d.	A contract is created when the attempted acceptance is expressly conditional on the offeror's agreement to the terms of the acceptance.

1 points

Question 57

1. Under the Uniform Commercial Code, if the parties are both merchants, additional terms in the offeree's form may be included in the agreement unless the:

   	a.	offer expressly limited acceptance to its own terms.
   	b.	new terms materially abide the offer.
   	c.	offeror gives notice of objection to the new terms without considering time limit.
   	d.	offeree clearly makes a counteroffer by expressly rejecting the offer.

1 points

Question 58

1. Jane tells Mark that she would pay him $50 if Mark finds her lost bag. This is an example of a _____.

   	a.	bilateral contract
   	b.	unilateral contract
   	c.	contingent contract
   	d.	multilateral contract

1 points

Question 59

1. To create acceptance to an offer for a bilateral contract, _____.

   	a.	an offeree must perform the act requested by the offeror
   	b.	silence will never constitute acceptance of an offer
   	c.	acceptance must always be properly communicated to the offeror
   	d.	an offeror is allowed to word his or her offer so that the offeree will be bound to the contract

1 points

Question 60

1. Nina sent a letter to Adrian that stated she wanted to hire him to decorate the interiors of her house. She wrote that he should accept the offer by mail. Adrian received the letter and telephoned Nina to say that he accepted the offer. Which of the following statements is true in this case?

   	a.	There is a valid acceptance and a binding contract because the telephone call was an authorized means of acceptance.
   	b.	There is a valid acceptance and a binding contract because the telephone call was a reasonable means of acceptance.
   	c.	There is a valid acceptance and a binding contract because the telephone call was a faster means of acceptance than the mail.
   	d.	There is no acceptance and no contract in this situation as it is clearly mentioned by the offeror that the acceptance must be by mail.

1 points

Question 61

1. Yael sent Jen an offer to sell his mountain bike for $150. After thinking about the offer for a few days, Jen sent Yael a letter accepting his offer and asking if he intended to leave the book basket attached to the bike. The next day, before Jen's letter arrived, Yael phoned Jen and told her that he had decided to sell his bike to Jake, who had offered him $200. Which of the following statements holds true of this case?

   	a.	Jen used unauthorized means of acceptance.
   	b.	Jen's acceptance was good and a contract was created when Jens' letter was mailed.
   	c.	Yael could revoke the contract as the goods had not exchanged hands yet.
   	d.	The contract was not valid as the UCC held acceptances to be valid only when they were received and acknowledged in writing by the offeror.

1 points

Question 62

1. Which of the following statements is true of consideration?

   	a.	Consideration always has a monetary value regardless of a legal value.
   	b.	A promisee can be enforced by the courts to keep his or her promise.
   	c.	Consideration enforces gratuitous promises.
   	d.	A promisee's consideration may be an act or a promise.

1 points

Question 63

1. If Kate promises a stereo system to Uli, which of the following holds true with regard to the idea of consideration?

   	a.	Uli will not be able to enforce Kate's promise if he has not done anything in return.
   	b.	Uli has to perform an act in return for Kate's promise.
   	c.	Kate's promise should not be supported by consideration.
   	d.	Uli's consideration should be an act and not a promise.

1 points

Question 64

1. On October 29, 1989, Alex agrees to paint Georgia's house during the Thanksgiving week for $4,000 in exchange for Georgia's promise to pay him $4,000 in cash immediately upon completion of the work. Which of the following statements is true of this case?

   	a.	Georgia could hire another painter on October 31 without legal liability to Alex because until he has painted the house, he has not given any consideration for Georgia's promise to hire him.
   	b.	Alex could back out of the deal on October 31 without legal liability to Georgia because she has not given any consideration for Alex's promise to do the work until she pays him.
   	c.	Both parties are bound on October 29 because each has given consideration for the other's promise.
   	d.	Alex could back out of the deal on October 29 without legal liability if he could prove that $4,000 was inadequate consideration to paint Georgia's house.

1 points

Question 65

1. If a promisor already had a duty to do what he has done or promised to do, the promisor has _____.

   	a.	made new consideration to support a modification and it is unenforceable
   	b.	not given legal value
   	c.	agreed to do something he had no right to do
   	d.	made a promise which is consideration

1 points

Question 66

1. Stintson Corp. had agreed to create employee identity cards for McLaughlin Inc. for $60,000. Some of the cards delivered by Stintson Corp. had damages made during the lamination process. McLaughlin Inc. promised Stintson Corp. an additional $20,000 to replace the damaged identity cards, and Stintson Corp. did so. Then McLaughlin Inc. refused to pay Stintson Corp. more than $60,000 for the work. Which of the following statements is true of this situation?

   	a.	Stintson Corp. is not entitled to any more than $60,000 for its work.
   	b.	McLaughlin Inc. owes Stintson Corp. the additional $20,000.
   	c.	Stintson Corp. would still be entitled only to $60,000 because such an act is new consideration that was provided to support the modification.
   	d.	Stintson Corp. is entitled to the additional $20,000 as legal value has nothing to do with adequacy of consideration.

1 points

Question 67

1. Jake had grown tired of working on the family farm and was considering moving away. However, his parents told him, "If you'll stay and help us, we'll leave you the farm when we die." As a result, Jake decided to stay on the farm and worked there for the next twenty years. However, when his parents finally died, Jake learned that they had left the farm to his brother, Nathan. Jake filed suit against his parents' estate to enforce their promise of leaving him the farm. Which of the following would be true of this scenario?

   	a.	Nathan and the parents' estate should be allowed to defeat Jake's claim to the farm by arguing that the parents' promise was enforceable because Jake gave consideration for the promise.
   	b.	The work that Jake did on the farm before his parents made their promise is sufficient consideration to make their promise enforceable.
   	c.	Jake's parents' promise is not enforceable because it was illusory.
   	d.	Jake's parents' promise would be enforceable under the doctrine of promissory estoppel.

1 points

Question 68

1. Under the Uniform Commercial Code, a buyer in the ordinary course of business:

   	a.	takes goods free of any security interest in the goods that his or her seller may have given a third party
   	b.	is a person who transacts only with nonmerchants.
   	c.	does not act in good faith
   	d.	is one who buys goods from a merchant, knowing that the sale violates the ownership rights of a third party.

1 points

Question 69

1. Which of the following is the basic purpose for making exceptions to the Uniform Commercial Code's general rules on "buyers in the ordinary course of business"?

   	a.	To protect the rights of sellers
   	b.	To place the burden of loss on the good faith purchasers
   	c.	To promote commerce by giving buyers the knowledge that they will get good value for goods that they purchase
   	d.	To protect those who innocently buy from merchants, thereby promoting confidence in such commercial transactions

1 points

Question 70

1. Which of the following statements is true of an insurable interest in goods?

   	a.	Buyers have an insurable interest in goods at the moment they pay for the goods.
   	b.	Buyers have an insurable interest in goods at the moment they get the title to the goods.
   	c.	Sellers have an insurable interest in goods at the moment the goods are identified to the contract.
   	d.	Sellers have an insurable interest in their goods as long as they have title to the goods or a security interest in them.