Phil agrees to work for Vacation Resorts, Inc., as a chef. In determining whether a contract has been formed, an element of prime importance is
a. the parties' intent.
b. Phil's rate of pay.
c. the duration of the work.
d. Vacation Resorts's facilities.
Opie offers to sell his guitar to Pinky for $100. Pinky agrees. They complete and sign a printed form, and Pinky gives Opie a check for the price. This check is
a. a formal contract.
b. an informal contract.
c. a simple contract.
d. no contract.
Alan offers to transfer Beth's DVDs to digital flash drives for $150 plus the cost of the drives. The mailbox rule will not apply if Beth accepts the offer by
c. regular mail.
Jesse defends against a breach-of-contract suit by College Credit Corporation by claiming that their deal¾a student loan accruing interest at a certain rate and payable beginning on a certain date¾was unfair because the consideration for their contract was inadequate.
Refer to Fact Pattern 12-1A. A court is most likely to evaluate the adequacy of consideration if
a. a thing exchanged has no intangible value to one of the parties.
b. something exchanged is not of direct economic or financial value.
c. the items exchanged were of unequal value.
d. there is a gross disparity in the value of the consideration exchanged.
Jenna, a minor acting on her own, signs a contract to buy a horse and its tack from Field Equine Ranch. Later, after taking possession of the horse and tack, Jenna disaffirms the deal. She
a. can keep the horse and the tack.
b. can keep the horse but not the tack.
c. can keep the tack but not the horse.
d. must return both the horse and the tack.
Commercial Construction, Inc. (CCI), contracts to build a store for Rita's Pizza Company with Rita's payment due on June 1. On June 1, Rita's bank is closed, and for this reason, Rita's claims it cannot pay on time. In this situation
a. CCI is in breach of contract.
b. Rita's is in breach of contract.
c. the contract is discharged.
d. the contract is suspended.
Consumer Credit Union pays Derby $10,000 to design an ad campaign. The next day, Derby tells the credit union that he has accepted a job in Boston and cannot design the campaign. As compensatory damages, the credit union can recover
Fidelio Corporation enters into a contract with Equi Insurance, Inc., to obtain health insurance for Fidelio employees. Equi breaches the contract. If Fidelio is awarded compensatory damages, the purpose would be to
a. establish, as a matter of principle, that Equi acted wrongfully.
b. provide Fidelio with funds for a foreseeable loss beyond the contract.
c. provide Fidelio with funds for its loss of the bargain.
d. punish Equi and set an example to deter others from similar acts.
Dondi contracts to buy a custom espresso maker from Caffee Specialties, Inc., for $4,500, but Caffee fails to deliver. Dondi buys the appliance elsewhere for $5,500. Dondi's measure of damages is
b. $1,000 plus incidental damages.
c. incidental damages only.
Damon contracts to repair the turf on a soccer field for Carousel Sports Park. Damon knows that without the repair, Carousel will have to cancel an upcoming game. Damon does not perform as promised. As consequential damages, Carousel can recover
a. the cost of new turf.
b. the difference between Damon's price and the actual cost of repair.
c. the loss of profit from the canceled game.
Karif orally agrees to buy a unique collection of sports memorabilia for $1,000 from Jane and sends her $250 as a down payment. When Karif sends her the rest of the price, Jane refuses to ship the collection. Karif should seek
d. specific performance
Clear Creek Corporation enters into a contract with Brightside Management Associates to manage and maintain Clear Creek's apartment complex. Their contract provides that neither party can recover damages for a non-fraudulent or unintentional breach. This is
a. a limitation-of-liability clause.
b. an exculpatory clause.
c. a liquidated damages clause.
d. a quasi contract.
Fresh Harvest, Inc., agrees to sell to Gina's Bed & Breakfast Inn a certain amount of locally grown produce each week but no mention is made of where the goods are to be delivered. In general, the UCC requires that the delivery take place at
a. a neutral place of business halfway between the parties' locations.
b. a "reasonable" place of delivery.
c. Fresh Harvest's place of business.
d. Gina's place of business.
Valley Farms offers to sell Whole Harvest Bakeries, Inc., five hundred bushels of wheat. Whole Harvest responds, "We agree to buy five hundred bushels only if the wheat is Grade A quality." This statement is
a. a breach.
b. a counteroffer.
c. a confirmation.
d. an acceptance.
Olisa enters into a contract to buy a stove from Pay-to-Own Appliance store with the price to be paid in monthly installments. After thirty-six months of payments, Olisa has paid more than twice the price of a similar stove. Eighteen payments remain due under the contract.
Refer to Fact Pattern 19-1A. Under the UCC, the court can evaluate the contract to determine whether it was
unreasonably unfair and one sided
a. at the time it was made.
b. at the end of its term.
c. in the middle of its performance.
d. at the time of Gail's suit.
Delicioso Tea Company and Savory Stores, Inc., enter into a contract for a sale of organic tea. The contract includes the term "F.O.B. River City," which is Savory's location. This means that the contract is
a. a bill of lading.
b. a destination contract.
c. a shipment contract.
d. a warehouse receipt.
Laraby, a representative for Merchandise Shipping Company, delivers a bill of lading to Caitlin, the owner of Dockside Warehouse. A bill of lading is
a. an invoice for payment for loading and carting verified by a seller.
b. an order to ship goods signed by a buyer.
c. a receipt for goods signed by a carrier.
d. a receipt issued by a warehouser for goods in a warehouse.
Suki leaves a Update-brand watch at Timepiece Sales & Repair to be fixed. Timepiece sells the watch to Vera, who does not know that the watch belongs to Suki. Suki can recover from
a. no one.
Finished Furnishings, Inc., agrees to lease an Oak Top-brand desk to Research Resources, Inc. (RRI), which agrees to pick it up at Streetside Warehouse. Before RRI retrieves the desk, it is stolen. The loss is suffered by
a. Perfect Furnishings.
b. Oak Top.
c. Streetside Warehouse.
Dragonaire Corporation contracts with Excel Trucking Company to take goods to Fly-By Airlines, Inc., with Fly-By to transport the goods to a Geo Storage Company warehouse. Excel, Fly-By, and Geo each acknowledge possession of the goods by a document of title. Excel, Fly-By, and Geo are
Crest Jewelers buys diamonds from Paramount Gems to resell with the right to return the unsold stones in lieu of payment. This is
a. a bailment.
b. a consignment.
c. a sale on approval.
d. a sale or return.
Open Road Showroom sells new and used motorcycles. Some of the motorcycles are held on consignment, including six consigned by Pedro Cycles, Inc. Like most consignments, Open Road's deal with Pedro Cycles is
a. a bailment.
b. a sale.
c. a delivery ex-ship.
d. a lease.
Screen Perfect, Inc., and Vibrant View Stores enter into a contract for a sale of 3D HD TVs with certain specifications. Screen Perfect ships TVs that are not 3D but otherwise meet the specifications. Vibrant View
a. cannot reject the entire shipment.
b. can reject the entire shipment.
c. must accept the entire shipment.
d. must reject the entire shipment.
Pie Sales Corporation orders ReadyMade-brand pies from Savory Foods Company. Savory identifies the goods. Before they are shipped to Pie Sales, an insurable interest in the goods exists in
a. Pie Sales and Savory Foods.
b. ReadyMade and Savory Foods.
c. Pie Sales and ReadyMade.
d. all of the parties as tenants in common.
Consuelo and Gabriela enter into a contract for a sale of saxophones and other brass instruments. Consuelo delivers, but Gabriela does not pay. Consuelo can normally recover as damages
a. any profit lost minus any loss avoided.
b. whatever amount the seller wishes to claim.
c. the purchase price plus incidental damages.
d. the market price at the place at which the seller delivered the goods.