• Question 1
0 out of 5 points
Triple Cyl contracts with Manu Pow Partners to sell 100 forklift engines at a cost of $2,000each. Triple Cyl
... [Show More] agrees to deliver the engines in one installment on April 1. On March 20, Triple Cyl delivers 98 engines together with a note stating that the remaining two engines would be delivered the following day. The next day Triple Cyl delivers two engines. Is Manu Pow Partners entitled to reject the engines? Choose the best answer:
SelectedAnswer:
No, TripleCyl has substantially performed, and substantial performances not breach.
• Question 2
Mandie interviews Carlton for a new job at Mandie’s company. At the end of the
5 out of 5 points
interview, Mandie offers to hire Carlton on a two-year contract with a salary of $42,000, plus health insurance. Carlton asks if he can “sleep on it” and let Mandie know his answer the next day. Mandie agrees. That night, Mandie texts Carlton the message: “I just found someone
else for the position, but thanks for interviewing and best of luck.” Choose the best answer:
SelectedAnswer:
Carlton cannot accept the offer because it was revoked.
• Question 3
5 out of 5 points
GC Company is a building contractor, performing work for the Owner of a construction project. The contract between GC Company and Owner provides that there will be six phases of work. Further it provides that at the end of each phase of work, GC Company should submit its request for payment to Owner’s architect. Once the architect approves the work performed, GC Company is entitled to payment of 1/6 of the total contract price. GC Company performs work on phases 1, 2, 3, 4, and 5, and the Owner pays for the work despite the fact that GC Company never submitted its requests for payment to the architect and never got the architect’s approval of the work. When GC Company submits its request for the sixth and final payment, the Owner refuses to pay it on the grounds that GC Company has never submitted it, or any other request for payment, to the architect. What is GC Company’s most likely argument that it is entitled to payment?
Selected Answer:
Owner has waived the right to insist on strict compliance with the condition that was included in the contract.
• Question 4
5 out of 5 points
Drain Clean Solution, Inc. (DCS) cleans industrial drainage systems. DCS contracts with Big Motor Co. (BMC) to clean the water drainage systems around its large manufacturing facility. DCS agrees to charge $15,000 for its services. It costs DCS $12,000 to perform the work. The fair market value of the work to BMC is $13,000. After the work is
performed, BMC does not pay DCS. Choose the best answer:
Selected Answer:
If DCS is awarded $12,000, that amount represents DCS’s reliance interest.
• Question 5
5 out of 5 points
Apples Co. sells apples. Apples are readily available in the marketplace. Beta Co. operates a large retail fruit market. Apples contracts to sell 30 bushels of apples to BetaCo. and deliver them on November 20. On November 1, Apples Co. tells Beta Co. that it will not deliver any apples to Beta Co. Choose the best answer:
Selected Answer:
If Beta Co. buys apples from another seller at a price that is
$300 more than the contract price between Apples Co. and Beta Co., Beta Co. will recover $300 from Apples Co.
• Question 6
5 out of 5 points
Allen is hiring a computer database designer to help his law firm design a custom client management database. He interviews Megan for the job, and would like to hire her. He needs someone who will be able to start work right away, and it is important that the new hire sign his confidentiality agreement so that confidentiality of client information will be preserved when the database is designed. Allen locates a form called “employment
agreement,” which includes a confidentiality agreement, and mails it to Megan. The cover letter enclosing the agreement indicates that Megan “must sign this agreement without making any changes to it and hand-deliver it to my secretary on or before June 1.” Choose the best answer:
Selected Answer:
Allen can require that Megan hand-deliver the letter to his secretary because he, as offeror, can dictate how it is accepted.
• Question 7
5 out of 5 points
Blue Studio (Blue) contracts with Derrick Teal (Teal) for Teal to lease Blue’s recording studio to record Teal’s series of 12 podcasts. The recording session is scheduled to take place on December 12. On December 11, the building where Blue’s studio is located is destroyed by a flood.
What is the most likely outcome?
SelectedAnswer:
Blue will have a defense of impracticability that will excuse its inability tomake a studio available to Teal.
• Question 8
5 out of 5 points
Fifo, Inc. and LevelLLC have been doing business together for eleven years. Fifo, Inc. provides business accounting services for LevelLLC’s small construction business. Last spring, when Fifo, Inc. had some storm damage at its home office, LevelLLC sent some workers over to repair the damage at no cost to Fifo, Inc. The following summer, LevelLLC found itself being audited by the Internal Revenue Service. Fifo, Inc. agreed toadvise LevelLLC during the audit at no cost, as a way of thanking LevelLLC for its help the previous spring. Is the agreement between Fifo, Inc. and LevelLLC a bargained-for exchange?
SelectedAnswer:
No, because Fifo, Inc.’s promise to assist in the audit was not made toinduce a return promise or performance from LevelLLC.
• Question 9
5 out of 5 points
Employer contracts with Employee to serve as the Chief Operating Officer to the Employer. The term of the contract is one year. The annual salary is $75,000. Before theemployment begins, Employee quits. Employer pays a recruiter $3,250 to find a replacement employee. The recruiter finds a comparably qualified replacement employee who is willing to serve as Chief Operating Officer for an annual salary of
$80,000. Choose the best answer:
SelectedAnswer:
Employer is entitled to damages of
$8,250.
• Question 10
5 out of 5 points
Lynda is the Chief Operating Officer a medical device manufacturer. She meets with Rupert, who has worked for the company for 40 years. Lynda verbally promises Rupert that if he retires, the company will pay him a monthly retirement benefit until he dies. Rupert retires. Lynda argues that the alleged verbal agreement is unenforceable because the Statue of Frauds requires that it be in writing. Choose the best answer:
SelectedAnswer:
Lynda’s argument will fail because the agreement could be completed in less than one year if Rupert died less than one year after the agreement was made.
• Question 11
Coldair manufactures refrigerators designed and sold for residential use. The
5 out of 5 points
refrigerators are designed to maintain an internal temperature of between 33 and 40 degrees Fahrenheit. Natasha is a scientist who works with viruses. To preserve vials containing influenza viruses, she needs refrigerators that will maintain a constant temperature of 50 degrees. Natasha purchases 3 Cold air refrigerators for her lab,
ordering them from a large retailer’s website. The refrigerators are delivered, but after she plugs them in and turns the temperature controls to the warmest setting, none of the refrigerators is warm enough to use for her experiments. Choose the answer that is false:
Selected Answer:
Natasha does not have a claim for breach of the implied warranty of merchantability because she did not negotiate for a warranty of merchantability when she purchased the refrigerator.
• Question 12
0 out of 5 points
Renée lost her job last year and has been unable to find employment since then. She has been living in her car for the past two months, but knows that with winter approaching, she needs to find a place to live.
Unfortunately, the odd jobs she’s foundonly keep her employed for about 10 to 20 hours each week, and she is not sure she makes enough to rent even a small apartment. She meets with a property manager about renting a room in an older house that the manager manages. The manager agrees to rent the room to Renée for $200 each month, but only if Renée will sign a
lease agreement that includes a densely worded “future wage assignment” provision insmall print, which provides that Renée will pay 10% of any future wages she earns to the property management company for the next 5 years. No other affordable housing options are available to Renée. She signs the lease. The next year, Renee obtains a job working as lab technician in a hospital earning
$35,000. What’s Renee’s best argument that the future wage assignment is unenforceable, and why?
SelectedAnswer:
The agreement was obtained by duress because Renée felt she had noreasonable alternative but to sign it.
• Question 13
5 out of 5 points
Which of the following contracts is most likely to be enforced by way of the remedy ofspecific performance?
SelectedAnswer:
A contract requiring that a seller of oceanfront property convey theproperty to a buyer.
• Question 14
5 out of 5 points
Where a party commits a breach, the nonbreaching party has the rightto suspend performance, terminate the contract, and recover damages.
SelectedAnswer:
materi al
• Question 15
0 out of 5 points
Boone hires Lenny to work as his bodyguard for 12 months. Two months into the contract, Boone’s cousin, Austin, moves into the apartment building next to Boone. Boone knows Austin has a lot of experience in the security industry, and he has alwaysliked spending time with Austin, so he hires Austin to be his security guard. Boone, falsely, tells Lenny that because Lenny is always late for work, he is fired. One month later, Lenny gets a job working as a bodyguard for someone else. Choose the best answer:
SelectedAnswer:
Lenny is entitled to 10 months of wagesfrom Boone.
• Question 16
5 out of 5 points
Allied Signage, LLC contracts to sell to RampCo three custom parking garage signs, complete with brackets, and to install all three signs on the front of RampCo’s three parking garage locations. Is the transaction covered by the Uniform Commercial Code?
SelectedAnswer:
Yes, if the contract is predominantly forgoods.
• Question 17
5 out of 5 points
When a party seeks to recover damages for lost profits, it must prove that loss with
certainty.
SelectedAnswer:
reasonable
• Question 18
5 out of 5 points
Boone hires Lenny to work as his bodyguard for 12 months. Two months into the contract, Boone’s cousin, Austin, moves into the apartment building next to Boone. Boone knows Austin has a lot of experience in the security industry, and he has always liked spending time with Austin, so he hires Austin to be his security guard. The next day when Lenny is 5 minutes late for work , Boone,
tells Lenny that because Lenny is was late for work, he is fired. Choose the best answer:
Selected Answer:
Lenny’s delayed performance of his duties under the contract is an immaterial breach, and Boone will have to continue to pay Lenny to be his personal bodyguard for the rest of the contract.
• Question 19
5 out of 5 points
Bolt Restoration, LLC contracts to sell 10,000 boxes of reconditioned bolts to The Bolt Barn for $40 per box. The boxes are to be delivered in 30 days. At the time of contract, it costs Bolt Restoration, LLC $30 to make each box of bolts. The day after the contract, one of the essential components for reconditioning the bolts, bolt solvent, increases in price sharply. The price increase means that it will cost Bolt Restoration, LLC $70 to make each box it sells. Accordingly, instead of making $100,000 on the contract, Bolt Restoration, LLC will lose $300,000 if it has to perform the contract. Choose the best answer:
SelectedAnswer:
Bolt Restoration, LLC will not be successful in arguing that the contract is unconscionable, because the contract was fair to Bolt Restoration, LLC at the time it was made. [Show Less]