1. 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.
2. 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.
3. 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.
4. Jesse defends against a breach-of-contract suit by College Credit Corporation
by claiming that their deala student loan accruing interest at a certain rate and payable beginning on a certain datewas 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.
5. 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.
6. 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.
7. 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
8. 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.
9. 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.
10. 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.
11. 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
12. 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.
13. 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.
14. 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.
15. Olisa enters into a contract to buy a