WBU BUAD3318 CHAPTER 10 ESSAY
· Question15 out of 5points
CorporateCode, Inc., sells business software—accounting and bookÂkeeping programs,blank business forms, inventory control functions, and the like—in differentcombinations, in different packages, at different prices. Each packageincludes a shrink-wrap agreement that limits warranties and remedies.Developmental Research Corporation (DRC) buys a Corporate Code package anduses the product. Later, DRC files a suit against the software seller,claiming that the product was flawed and that the flaws caused DRC to sufferbusiness losses. DRC asks for relief that exceeds the limits in theshrink-wrap agreement. What is a shrink-wrap agreement? Are such agreementsalÂways enforced? Under what circumstances is a court likely to enforce thisagreeÂment?
· Question24 out of 5points
On December1, Petroleum, Inc., sent Rachel & Rico (R&R) a letter, via overnightdelivery, offering to employ R&R to review Petroleum’s tax situation forthe current year for $10,000. In the letter, the company stated that R&Rhad ten days to accept. On December 5, R&R sent an e-mail message thatstated, “The price for the tax analysis seems too low. Would you considerpaying $15,000?†Petroleum received the message without respondingimmediately. The next day, Smith & Taylor, an R&R competitor, offeredto conduct the appraisal for $8,000. On learning of this offer, R&Rimmediately e-mailed Petroleum, agreeing to do the work for $10,000.Petroleum received this message on December 7. Explain why R&R andPetroleum do, or do not, have a contract.
WBU BUAD3318 CHAPTER 11 TRUE FALSE
• Question 11 out of 1pointsIn general, acourt will question the adequacy of consideration based solely on thecomparative value of the things exchanged.FalseTrueFalse.• Question 21 out of 1pointsAny contract tocommit a crime is in violation of a statute and thus is unenforceable.TrueTrueFalse• Question 31 out of 1pointsThe doctrine ofpromissory estoppel does not apply if there is a clear and definite promise.FalseTrueFalse.• Question 41 out of 1pointsForconsideration to have “legally sufficient value,†it must con¬sist of goods ormoney.FalseTrueFalse• Question 50 out of 1pointsUsury statutesplace a minimum on allowable rates of interest.TrueTrueFalse• Question 61 out of 1pointsA transactionthat lacks a bargained-for exchange lacks an element of consideration.TrueTrue• Question 71 out of 1pointsContractsentered into by mentally incompetent persons can be valid.TrueTrue• Question 81 out of 1pointsAn An illusorypromise is a promise that is enforceable without consideration.FalseTrue• Question 91 out of 1pointsWhether acontract with an unlicensed professional is legal and enforceable depends onthe purpose of the licensing statute.TrueTrue• Question 101 out of 1pointsA promise to dowhat one already has a legal duty to do constitutes legally suf¬ficientconsideration.FalseTrue• Question 111 out of 1pointsIf a debt isliquidated, accord and satisfaction cannot take place.TrueTrue• Question 121 out of 1pointsRescission isthe unmaking of a contract so as to return the parties to the positions theyoccupied before the contract was made.TrueTrue• Question 131 out of 1pointsA promise byone party to pay another for refraining from an action that one has a legalright to undertake is enforceable.TrueTrue• Question 141 out of 1pointsIf a contractis divisible into legal and illegal portions, a court may enforce the legalportion but not the illegal one.TrueTrue• Question 150 out of 1pointsA contractcalling for the performance of an illegal act is not illegal.TrueTrue• Question 161 out of 1pointsUnconscionabilitycan involve the lack of an opportunity to read a contract or ask questionsabout its meaning.TrueTrue• Question 171 out of 1pointsIn anemployment contract, a covenant not to compete can be enforceable.TrueTrue• Question 181 out of 1pointsA minor’s rightto disaffirm a contract terminates ninety days after the contract’s date.: FalseTrue• Question 191 out of 1pointsAll contractsbetween adults and minors are void.FalseTrue• Question 201 out of 1pointsAn exculpatoryclause in an employment contract is usually enforceable.FalseTrue
WBU BUAD3318 CHAPTER 11 ESSAY
· Question15 out of 5points
Dean, thepresident of Billing & Credit Company, promises to pay his employeeEwing, who is dangerously obese, $10 for every pound that he loses within thenext two years. Ewing agrees, diets and exercises, loses 154 pounds, and asksDean for $1,540. Dean refuses to pay, sayÂing that he does not remember thepromise, but that even if he did make it, there was no consideration, andEwing’s improved health is a sufficient benefit for his effort and sacrifice.Ewing files a suit against Dean. In whose favor is the court likely to rule,and why?· Question25 out of 5points
Joan, who is 16 years old, moves out of herparents’ home and signs a one-year lease for an appartment at KenwoodApartments. Joan’s parents tell her that she can return to live with themat any time. Unable to pay the rent, Joan moves back to her parents’ hometwo months later. Can Kenwood enforce the lease against Joan? Why or whynot?· Question 33.5 out of 5 points
First Business Solutions, Inc., develops andimplements online sales strategies for its clients. First Business hiresGideon to plan and execute an e-commerce strategy for marketing Western SkyeCompany’s products. Gideon signs a contract that inÂcludes a clauseprohibiting him from competing with First Business during and afÂter theemployment. After the plan is formed but before it is implemented, Gideonresigns from First Business’s employ and opens a competing business. InFirst Business’s suit against Gideon, what is the most important factorthe court should consider in determining whether Gideon should be allowedto compete with First Business?· Question 45 out of 5 points
In September,Sharyn agrees to work for Totem Productions, Inc., at $500/week for ayear beginning January 1. In October, Sharyn is offered the same workat $600 a week by Umber Shows, Ltd. When Sharyn tells Totem about theother offer, they tear up their contract and agree that Sharyn will bepaid $575. Is the new contract binding? Explain.
WBU BUAD3318 CHAPTER12 TRUE FALSE
• Question 11 out of 1pointsWhen thedominant party in a fiduciary relationship benefits from that relationship, apresumption of undue influence arises.TrueTrue• Question 21 out of 1pointsMost courtsrequire a showing of injury when an action is to rescind a contract for fraud.FalseTrue• Question 31 out of 1pointsA contract thatby its own terms cannot be performed within one year must be in writing to beenforceable.TrueTrue• Question 41 out of 1pointsThe use ofthreats to force a party to enter into a contract is duress.TrueTrue• Question 51 out of 1pointsMisrepresentationof a material fact can occur by words or action.TrueTrue.• Question 61 out of 1pointsIn almost allstates, negligent misrepresentation is treated as fraudulent misrepresentation.TrueTrue• Question 71 out of 1pointsCourts maygrant specific performance of an oral contract to transfer an interest in landthat has been partially performed.TrueTrue• Question 81 out of 1pointsIf a mistakeconcerns the future value of the object of the contract, a court will normallyprovide relief.FalseTrue• Question 91 out of 1pointsA statement ofopinion is generally subject to a claim of fraud.FalseTrue• Question 101 out of 1pointsMisrepresentationof law ordinarily entitles a party to relief from a contract.FalseTrue• Question 111 out of 1pointsEconomic needgenerally is sufficient to constitute duress.FalseTrue• Question 121 out of 1pointsA contract maynot be enforceable if one party is aware that the other party made a mistake offact.TrueTrue• Question 131 out of 1pointsIf acontractor’s bid contains a mistake in addition when totaling the estimatedcosts, the contract may not be enforceable.TrueTrue• Question 141 out of 1pointsParol evidenceincludes testimony about communications between the parties that are not containedin the contract itself.TrueTrue• Question 151 out of 1pointsOral evidenceto “fill in the gaps†of a contract with incomplete terms can be introduced ata trial.TrueTrue• Question 161 out of 1pointsUnder theStatute of Frauds, any contract that is not in writing is void.FalseTrue• Question 171 out of 1pointsWhen bothparties to a contract are mistaken about the same material fact, the contractcannot be rescinded.FalseTrue• Question 181 out of 1pointsWrittenevidence or an electronic record of a contract for a sale of goods priced at$50 or more is required.FalseTrue• Question 191 out of 1pointsThere are noexceptions to the writing requirement of the Statute of Frauds.FalseTrue• Question 201 out of 1pointsA contract inwhich a party assumes a primary obligation must be in writing to beenforceable.FalseTrue
WBU BUAD3318 CHAPTER12 ESSAY
Question14.75 out of 5points
HealthSource, Inc., offers to buy Medico Equipment & Supplies Corporation. OnJune 1, Medico gives Health Source copies of Medico’s financial statementsfor the preÂvious year. The statements show an inventory of $1 million. OnJune 15, Medico discovers that the previous year’s inventory is overstated by$500,000, but does not inform Health Source. On July 1, Health Source,relying on the fiÂnancial statements, buys Medico. On July 10, Health Sourcediscovers the invenÂtory overÂstatement. Can Health Source succeed in a suitagainst Medico? On what basis?
· Question24.25 out of 5points
Mikayla haslived in an apartment for ten years when she decides to buy a house. Herone-year lease will end on May 1. On April 15, she orally conÂtracts to buyNathan’s house for $150,000, with the closing (transfer of the deed) to takeplace on June 1. Nathan’s lawyer, who is out of town, is to draft a writtencontract of sale on his return to his office on May 15. Because Mikayla’slease is terminating, Nathan agrees to let her take possession of the house onMay 1 if she gives him a “down payment†on the house of $7,500. Mikaylaagrees and makes the payment. She moves into the house on May 2 and thefollowing weekend plants trees in the yard. On May 10, Nathan receives awritten offer from Oliver to buy the house for $200,000. Nathan acceptsOliver’s offer, asks Mikayla to move out of the house, and tries to returnthe $7500 to her. Mikayla claims that she has an enforceable contract to buythe house. Nathan claims that any such contract must be in writing to be enÂforceableunder the Statute of Frauds. Who is correct and why?
WBU BUAD3318 CHAPTER 13TRUE FALSE
• Question 11 out of 1pointsA condition isa qualification in a contract based on a future event that is certain to occur.FalseTrue• Question 21 out of 1pointsWhen theparties to a contract agree that its performance should directly benefit athird person, the third person becomes an intended third party beneficiary.TrueTrue• Question 31 out of 1pointsA contract isdischarged when a change in the law renders the performance illegal.TrueTrue• Question 41 out of 1pointsSubjectiveimpossibility of performance can discharge a contract.FalseTrue• Question 51 out of 1pointsObjectiveimpossibility of performance can discharge a contract.TrueTrue• Question 61 out of 1pointsAnticipatoryrepudiation discharges a contract.FalseTrue• Question 71 out of 1pointsAny beneficiarywho is not deemed an intended beneficiary is considered incidental.TrueTrue• Question 81 out of 1pointsMost contractsneed to be performed only to the satisfaction of a reasonable person unlessthey expressly state otherwise.TrueTrue.• Question 91 out of 1pointsIn anassignment, the assignee obtains only those rights that the assignor had.TrueTrue• Question 101 out of 1pointsCourts mayimply conditions from the purpose of a contract or from the intent of theparties.TrueTrue• Question 111 out of 1pointsBoth intendedand incidental beneficiaries acquire legal rights in a contract.FalseTrue• Question 121 out of 1pointsAn “as¬signmentof all rights†creates an assignment of rights but not a delegation of duties.FalseTrue• Question 131 out of 1pointsAny breachexcuses the nonbreaching party’s duty to perform.FalseTrue• Question 140 out of 1pointsA contract willbe discharged if reasonably foreseeable circumstances make it impossible toattain the contract’s purpose.TrueTrue• Question 151 out of 1pointsWhen rightsunder a contract are assigned unconditionally, the rights of the assignor areextinguished.TrueTrue• Question 161 out of 1pointsA contract issubstantially performed when performance creates sub¬stan¬tially the samebenefits as those promised in the contract.TrueTrue• Question 171 out of 1pointsA transfer ofcontractual rights to a third party is an assignment.TrueTrue• Question 181 out of 1pointsGiving noticeis legally necessary to establish the validity of an assignment.FalseTrue• Question 191 out of 1 pointsOralassignments are prohibited.FalseTrue.• Question 201 out of 1pointsIf no time forperformance is stated in a contract, any time is acceptable.FalseTrue
WBU BUAD3318
CHAPTER 13ESSAY
Question 15 out of 5 points
Logan borrows$150,000 from Ready Money Credit & Debit to buy new equipment for Logan’sSteakhouse. When Logan does not pay the loan, Ready Money wants to transfersthe right to the payment to Action Collection Agency. Action Collectionagrees to pay Ready Money for this right, but for a price that is less thanthe amount owed. Can Ready Money transfer this right to Action Collectionwithout Logan’s consent? If so, and Ready Money committed fraud in the dealwith Logan, could Logan legitiÂmately refuse to pay Action Collection?Explain.
· Question24.25 out of 5points
Lucycontracts to buy six cases of vintage wine from Mountainside Vineyards for$1,200. The contract states that delivery is to be made at Lucy’s residence“on or before June 1, to be used for niece’s wedding reception on June2.” On June 1, Mountainside’s delivery vehicle is involved in anaccident, and no wine is delivered to Lucy. On the morning of June 2, Lucybuys the wine from Nature’s Vintner. That afternoon, just before thereception, Mountainside tenders delivery of the wine at Lucy’s residence.Lucy refuses tender. Mountainside sues Lucy for breach of contract. How isthe court most likely to rule?
WBU BUAD3318 CHAPTER14 TRUE FALSE
• Question 11 out of 1pointsOrdinarily, theremedy for a seller’s breach of a contract for a sale of real estate isspecific performance.TrueTrue• Question 21 out of 1pointsA party whoknowingly accepts defective performance of a contract waives the breach.TrueTrue• Question 31 out of 1pointsA breach ofcontract entitles the nonbreaching party to sue for monetary damages.TrueTrue• Question 41 out of 1pointsThe most commonremedies available to a nonbreaching party include damages, rescission andrestitution, specific performance, and reformation.TrueTrue• Question 51 out of 1pointsUnder thedoctrine of mitigation of damages, the duty owed depends on the nature of thecontract.TrueTrue• Question 61 out of 1pointsA party seekingto recover in quasi contract must show that there was an actual contract oragreement between the parties.FalseTrue• Question 71 out of 1pointsReformation isan equitable remedy that allows a court to rewrite a contract to suit itself.FalseTrue• Question 81 out of 1pointsMost partiessettle their lawsuits for damages or other remedies prior to trial.TrueTrue• Question 91 out of 1pointsConsequentialdamages are awarded for damage caused by special circumstances beyond acontract itself.TrueTrue• Question 101 out of 1pointsNominal damagesare awarded for the breach of a contract to nominate someone or something to ahigher office, position, or category.Falsetrue• Question 111 out of 1pointsThe standardmeasure of compensatory damages is the value of breaching party’s promisedperformance.FalseTrue• Question 121 out of 1pointsPunitivedamages are usually awarded in lawsuits for breach of contract.FalseTrue• Question 131 out of 1pointsCompensatorydamages compensate an injured party for damages actually sustained and provedto have arisen directly from the loss of a bargain caused by a breach ofcontract.TrueTrue• Question 141 out of 1pointsThe failure ofone party to perform a contract entitles the other party to rescind it.TrueTrue• Question 151 out of 1pointsIn the contextof contract law, damages are designed to punish a breaching party and deterothers from similar conduct.FalseTrue• Question 161 out of 1pointsSpecificperformance will not be granted unless the party’s legal remedy is inadequate.TrueTrue• Question 171 out of 1pointsA liquidateddamages provision in a contract specifies a certain amount to be paid in theevent of a future default or breach of contract.TrueTrue• Question 181 out of 1pointsA contract mayinclude a clause stating that damages will be limited to a maximum amount.TrueTrue• Question 191 out of 1pointsExpenses thatare caused directly by a breach of a contract are known as primary damages.FalseTrue• Question 201 out of 1pointsThe measure ofcompensatory damages often varies by type of contract.TrueTrue
WBU BUAD3318 CHAPTER 14ESSAY
Question 14.5 out of 5 points
Complete Boring Corporation ships its only pump to Drills & Bits,Inc., the manufacturer, for repair. Complete Boring hires EverywhereShipping, Inc., to take the pump to Drills & Bits and to return it toComplete Boring as soon as the repair is complete. Complete Boring is forcedto susÂpend operations without a pump, but Everywhere Shipping does not knowthis. Complete Boring expects to be without the pump for five days and tolose profits of $5,000. When the pump is not returned by the end of the fifthday, Complete Boring rents a pump at a cost of $100 per day. EverywhereShipping delays five more days before returning the pump. Complete Boringfiles a suit against Everywhere Shipping, asking for compensatory,consequential, and punitive damages. Will Complete Boring recover?
· Question 24 out of 5 points
Gretchen buys a tractor from Haulers Equipment Company, paying $1,000down and agreeing to pay off the balance in thirty-six monthly payments of$200 each. The terms of the agreement call for Gretchen to make a payment onor before the first of each month, beginning March 1. During the first sixmonths, Haulers receives a $200 payment before the first of each month.Starting in September, however, and continuing for the subsequent fivemonths, Gretchen’s payment is never made until the fifth of the month.Haulers accepts and cashes the payment check each time. Before the nextpayment is due, Haulers decides that it is no longer willing to accept latepayments. Can Haulers sue Gretchen immediately for breach? Can Gretchencontinue to make late payments without liability? Explain.
WBU BUAD3318 CHAPTER 15ESSAY
Question 14 out of 5 points
Key of G Products, Inc., offers to sell to Harmony Company one hundredMP3 players at $50 a piece, subject to certain specific delivery dates.Harmony replies with a signed purchase order that reads, “Accept your ofÂferfor 100 I-appliances at $50 each. Must be delivered to our wareÂhouse.†Keyof G does not respond or deliver the goods. Harmony files a suit for breachof contract, to which Key of G answers that there is no contract becauseHarmony’s purchase order contained additional terms and is not signed by Keyof G. Can Harmony recover? Explain.
· Question 25 out of 5 points
Sequent Products makes washing machines. Over the phone, Sequentoffers to sell Treadwater Appliance Outlet one hundred model fx2013 washersat a price of $150 per unit. Sequent says that it will keep the offer openfor thirty days. Treadwater responds that within two or three weeks it willdecide whether to accept. One week later, Sequent e-mails, and Treadwaterreceives, notice that the offer is withdrawn. Treadwater immediately phonesSequent to accept the $150-per-unit offer. When Sequent refuses to deliver atthat price, Treadwater files a suit. Sequent asserts, first, that there is nocontract and, second, that if there is a contract, it is unenforceable.Discuss Sequent’s assertions.
WBU BUAD3318 CHAPTER15 TRUE FALSE
• Question 11 out of 1pointsWhenever theparties to an international transaction fail to specify in writing the preciseterms of the contract, the United Nations Convention on Contracts for theInternational Sale of Goods (CISG) will be applied.TrueTrue• Question 21 out of 1pointsIf the partiesto a contract for a sale of goods have not agreed on a price, a court willdetermine a reasonable price at the time for delivery.TrueTrue• Question 30 out of 1pointsEven if acontract in which goods and services are mixed is primarily a goods contract,any dispute over the services portion will not be decided under the UCC.TrueTrue• Question 41 out of 1pointsCertainprovisions of UCC Article 2A apply only to consumer leases.TrueTrue• Question 51 out of 1pointsIf a courtdeems any clause in a contract to have been unconscionable at the time it wasmade, the court can limit its application.TrueTrue• Question 61 out of 1pointsA lessor is aparty who transfers the right to the possession and use of goods under a lease.TrueTrue• Question 71 out of 1pointsIn interpretinga commercial agreement, a court will assume that the usage of trade was takeninto account when the agreement was phrased.TrueTrue• Question 81 out of 1pointsNo oralcontract is enforceable under the UCC.FalseTrue• Question 91 out of 1pointsRequirementscontracts are common in the business world and normally are enforceable.TrueTrue• Question 101 out of 1pointsThe terms of afully integrated contract can be contradicted by evidence of any prioragreements.FalseTrue• Question 111 out of 1pointsUnder the UCC,a sales or lease contract will fail for indefiniteness if one or more terms areleft open.FalseTrue• Question 121 out of 1pointsUnder the UCC,an agreement modifying a contract for the sale or lease of goods needs noconsidera¬tion to be binding.TrueTrue• Question 131 out of 1pointsGoodsassociated with real estate never fall within the scope of UCC Article 2.FalseTrue• Question 141 out of 1pointsAcceptance ofan offer to buy, sell, or lease goods generally may be made in any reasonablemanner and by any reasonable means.TrueTrue• Question 151 out of 1pointsThe UCC viewsthe entire commercial transaction for the sale and payment for goods as asingle legal occurrence.TrueTrue• Question 161 out of 1pointsThe UCC imposesspecial business standards on casual and inexperienced sellers and buyers.FalseTrue• Question 171 out of 1pointsUCC Article 2applies to sales transactions between all buyers and sellers.TrueTrue• Question 181 out of 1pointsArticle 2 ofthe UCC sets the requirements for sales contracts and Article 2A covers similarissues for lease contracts.TrueTrue• Question 191 out of 1pointsTo be characterizedas a “good†under the UCC, an item of property must be movable.TrueTrue.• Question 201 out of 1pointsUnder the UCC,a sale is the passing of title from a seller to a buyer for a price.TrueTrue
WBU BUAD3318 CHAPTER16 TRUE FALSE
• Question 11 out of 1pointsRevocation ofacceptance is not effective until notice is given to the seller or lessor.TrueTrue• Question 21 out of 1pointsIn most sales,sellers warrant that they have good and valid title to the goods sold.TrueTrue• Question 31 out of 1pointsWhen a lessorrefuses to deliver the goods, a lessee can obtain specific performance if thegoods are unique.TrueTrue• Question 41 out of 1pointsIf some of thegoods delivered do not conform to a contract and the seller or lessor hasfailed to cure, the buyer or lessee can make a partial acceptance.TrueTrue• Question 51 out of 1pointsUnless theparties agree otherwise, the buyer or lessee has an absolute right to inspectthe goods before making payment.SelectedAnswer: TrueTrue• Question 61 out of 1pointsIf the partiesto a sales contract state that a certain remedy is exclusive, then it is thesole remedy.TrueTrue• Question 71 out of 1pointsThe UCC’s goodfaith provision can be disclaimed.FalseTrue• Question 81 out of 1pointsOnce the timefor performance under a contract has expired, the seller or lessor no longerhas a right to cure.TrueTrue• Question 91 out of 1pointsTo bemerchantable, goods must be at least average, fair, or medium-grade quality.TrueTrue• Question 101 out of 1pointsIf either thegoods or their tender fails to conform to the contract in any respect, thebuyer or lessee must reject all of the goods.FalseTrue• Question 111 out of 1pointsIf a lesseebreaches a contract, the lessor can choose to simply cancel the contract.TrueTrue• Question 121 out of 1pointsGenerally, theimplied warranties of merchantability and fitness for a particular purposecannot be disclaimed.FalseTrue• Question 131 out of 1pointsIf goods inevery respect conform to a contract, the buyer or lessee does not have a rightto reject the goods.TrueTrue• Question 141 out of 1pointsGoods that aremerchantable are fit for any purpose.False: True• Question 151 out of 1pointsIf a buyerbreaches a contract and the seller resells the goods to another party, theseller cannot hold the breaching buyer liable for any loss.FalseTrue• Question 161 out of 1pointsImpliedwarranties can arise as a result of a course of dealing.TrueTrue• Question 171 out of 1pointsIf a buyerrepudiates a contract, the seller can bring an action to recover the damagessustained.TrueTrue• Question 180 out of 1pointsIf a lessee isinsolvent, a lessor can stop the delivery of the goods still in transit,regardless of the quantity shipped.FalseTrue• Question 191 out of 1pointsIf, before thetime for contract performance, one party clearly communicates to the other theintention not to perform, such an action is not a breach of the contract.FalseTrue• Question 201 out of 1pointsTo specificallydisclaim an implied warrant of fitness for a particuolar purpose, a seller orlessor must mention the word fitness.FalseTrue
WBU BUAD3318 CHAPTER 16ESSAY
Question 15 out of 5points
SourceHeating Company contracts with Thermo Gas Company to buy 50,000 cubic feet ofnatural gas. Thermo agrees to deliver the gas in five equal installmentsbetween October 1 and the followÂing March 15. The winter is the warmest onrecord, ho