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TO : FiveStarLaw PART (3) : 1. Ed contracts with Nathan
TO : FiveStarLaw
PART (3) :
1. Ed contracts with Nathan to kill Nathan's mother-in-law for $1,000. Which element of consideration is missing from this contract?
A. All the elements of consideration are present
B. Legality of consideration
C. Consideration wasn't a bargained-for exchange
D. Adequacy of consideration
2. At his 80th birthday party, Graham declares that Elsie is his favorite grandchild and that he will leave Elsie $100,000 on his death. Sadly, Graham dies just three days later. No provision of his will leaves Elsie the $100,000. Elsie files a breach of contract claim against Graham's estate. The most likely result is that Elsie will lose because no contract existed due to lack of
A. agreement and consideration.
B. contractual capacity and form.
C. contractual capacity and consideration.
D. form and agreement.
3. Juan thinks he would like to purchase Tara's house, but doesn't know whether he will be able to save enough money for a down payment on a loan. Juan agrees to give Tara $5,000 for the option to purchase her house for $150,000 sometime within the next five years. Juan and Tara reduce their agreement to writing, sign it, and Juan gives Tara $5,000. Two years later, Juan wins the lottery and now is financially able to purchase Tara's house. However, that same day Juan receives a letter from Tara revoking her offer to sell for $50,000. Which of the following is true?
A. Tara's revocation is effective as long as she refunds the $5,000.
B. Juan can't complain because he failed to accept Tara's offer before it was revoked.
C. Tara's revocation is effective.
D. Tara's revocation isn't effective.
4. Esther lives with a caregiver on whom she is greatly dependent and trusts. The caregiver persuades Esther to sign a contract with the caregiver that greatly favors the caregiver. If the contract is set aside, it will likely be on what grounds?
D. Undue influence
5. Tom is selling his motorcycle to Carl. Tom tells Carl that the motorcycle runs perfectly, though he knows that the motorcycle leaks oil. Carl purchases the motorcycle and discovers the problem. Which of the following is true?
A. Tom committed active fraud.
B. Tom committed passive fraud.
C. Tom committed fraud in the inception.
D. Tom hasn't committed fraud.
6. Carlos promises to pay $100 for someone to paint his house. Timothy hears about the offer and paints Carlos's house onXXXXX However, Carlos intended that his other house, atXXXXX be the one to be painted and refuses to pay Timothy, claiming that there's no contract because they never discussed which house would be painted. If Carlos has a legal right to payment, it's most likely based on
A. implied-in-law contract.
B. implied-in-fact contract.
C. express contract.
7. Delivery of unordered merchandize is considered
A. a contract to purchase unless the recipient contacts the sender to reject the merchandize.
B. a contract to purchase if the items aren't returned.
C. performance of a contract.
D. an offer to sell.
8. Carrie decides to offer Shelley the opportunity to purchase her motorcycle for just $500. Carrie told Jim, a mutual friend of Shelley and her, that she intended to make the offer. Later, Carrie changes her mind. Shelley approaches Carrie and says she accepts the offer. No contract was formed most likely because
A. Carrie never communicated the offer to Shelley.
B. Jim was acting as an agent for Shelley without telling Carrie.
C. the terms of the offer weren't definite enough to form a contract.
D. Carrie didn't possess a serious, objective intention.
9. On the Internet, Sara came across a software package she wanted to download. To download the software, she had to read a disclaimer and click an "I Agree" button. Sara didn't bother to read the contents of the "Agreement and Warranties" disclaimer, but she clicked "I Agree." The software caused her computer to crash. Sara filed suit against the company that ran the Web site, and the company's defense is that the "Agreement and Warranties" disclaimer to which Sara agreed disclaimed any responsibility for such occurrences. The most likely result is that Sara will
A. win her lawsuit because she didn't the read disclaimer.
B. lose her lawsuit because she didn't read the disclaimer, which isn't enforceable.
C. lose her lawsuit because the disclaimer will be enforced.
D. win her lawsuit because disclaimers aren't enforceable.
10. Daisy contracts with Mike that in exchange for $50 Daisy won't whistle for a week. This contract is
A. unenforceable due to fraud.
B. not enforceable due to lack of consideration.
C. enforceable only if Daisy is a musician who whistles for a living and would suffer significant income loss by not whistling for a week.
11. Eric, a 17-year-old, signs a contract with the armed services to enlist. Later, XXXXX XXXXXes his mind and wants out of the contract. Can he void the contract based on incapacity to contract?
A. Yes, after he turns 18
D. In some states
12. Which of the following is a necessary element both for fraud and for misrepresentation?
A. A false statement
B. A fiduciary relationship
C. A hidden problem
D. The intent to deceive
13. Regan marries at age 17. Then, she enters into a contract with Art to purchase an automobile for $10,000. She later changes her mind and wants to void the contract. Which of the following is true?
A. Regan can't void the contract because she is over 15.
B. Regan can void the contract because she is married.
C. Regan can't void the contract because she is married.
D. Regan can void the contract because she is a minor.
14. Dave is declared insane and committed to an asylum. Dave escapes and goes to a car dealership, where he enters into a contract with Larry to buy a sports car. Which of the following statements is true?
A. Only Larry can void the contract.
B. Because Dave is legally insane, the contract is void.
C. To void the contract, Dave must prove he is insane.
D. Only Dave can void the contract.
15. Jacques offers to paint Alisha's house for $100. Before Alisha responds, Jacques dies. Which of the following statements is true?
A. A representative of Jacques's estate must find someone to paint Alisha's house.
B. A representative of Jacques's estate must paint Alisha's house for $100.
C. There's no contract because Alisha failed to accept Jacques's offer before he died.
D. Jacques's offer has been revoked.
16. Jackie tells a group of friends that she plans to sell her home. Meg asks how much Jackie hopes to get for the house, and Jackie replies, "$50,000." Meg says, "I accept your offer. I'll purchase your house for $50,000." No contract exists because
A. the terms of the offer aren't reasonably certain.
B. Jackie doesn't seriously intend to enter a contract.
C. Jackie's statements are merely preliminary negotiations.
D. the offer isn't properly communicated.
17. Josh runs over Barbara's dog. Barbara promises not to sue Josh if he pays her $200. Josh pays $200. Then Barbara sues, claiming an agreement not to sue doesn't constitute consideration. Which of the following is true?
A. Such contracts violate public policy and therefore are unenforceable.
B. Agreement not to sue is consideration only if it approximates what a court would have awarded.
C. Agreement not to sue isn't consideration.
D. Agreement not to sue is consideration.
18. Lance e-mails Fred, offering to buy his motorcycle for $750. Fred replies, agreeing. Later, Fred declines to honor the agreement, claiming that e-mail agreements aren't enforceable. In both the initial e-mail and the reply Lance and Fred typed their names. Which of the following is true?
A. There's no contract because the e-mails weren't witnessed.
B. There's no contract because contracts must have hand-written signatures to be enforceable.
C. There's no contract because e-mail agreements aren't enforceable.
D. The e-mails constitute a contract if Lance and Fred have agreed that electronic signatures can be used to create the agreement.
19. Tyler offers to dance naked on Main Street if Corey will mow Tyler's yard. Corey mows Tyler's yard. Which of the following statements is not potential grounds for setting aside the contract?
A. Illegality of consideration
B. Lack of serious intent to contract
C. Inadequacy of consideration
D. All of the above are potential grounds for setting aside the contract
20. Jack is a mature-looking 17-year-old who lives at home with his parents. Jack wants to purchase an automobile. Jack goes to Discount Car Sales, where Bud, the car salesman, never considers that Jack may be a minor. Bud sells Jack a car, with the agreement that Jack will pay Bud $100 per month over the next five years for the car. Which of the following is true?
A. Bud can hold Jack's parents liable for Jack's contract, because Jack was a minor living in their home at the time the contract was formed.
B. Bud can disaffirm the contract because of Jack's status as a minor at the time the contract was formed.
C. Jack can disaffirm the contract because of his status as a minor at the time the contract was formed.
D. Despite Jack's status as a minor, Bud can prohibit Jack from disaffirming a contract for a necessary (or basic) need.
PART (4) :
1. Danielle purchases life insurance on her own life with Big Life Insurance and makes her husband, Walter, the beneficiary. Which of the following statements is true?
A. Danielle is a donee beneficiary.
B. Danielle is an intended third-party beneficiary.
C. Big Life Insurance is a creditor beneficiary.
D. Walter is a donee beneficiary.
2. Jessica orally agrees that she will sell 400 pairs of flip-flops to a customer for $600. This agreement is
A. unenforceable because of the statute of frauds.
B. unenforceable because all necessary elements aren't met.
C. enforceable because all necessary elements are met.
D. unenforceable because of the parol evidence rule.
3. James leases an apartment to Kyle for $900 per month rent. The written lease contains no prohibition against assignment, nor does it expressly permit assignment. Kyle assigns his rights to Harley without any consideration. James finds out and objects. The assignment is
A. invalid because James didn't consent to the assignment.
B. valid because the written lease didn't prohibit it.
C. invalid because the lease didn't expressly permit assignment.
D. valid because there's no consideration for the assignment.
4. Warren agrees to paint Abby's restaurant for $1,000. Warren fails to paint. Abby may be entitled to punitive damages if
A. Warren doesn't know how to paint, misrepresented himself as a painter, and never intended to paint.
B. Abby loses profits as a result of the breach.
C. Abby has to pay substantially more than $1,000 for someone else to perform the job.
D. the contract breached was both written and witnessed.
5. Paul enters into a contract with Harry. Paul agrees to put a new roof on Harry's house, and Harry agrees to pay Paul $5,000. Paul is late on a payment to Sam's Supply House and tells Sam's Supply House that he will pay when he receives money from Harry. Sam's Supply House has heard this from Paul before and didn't receive money. To ensure Paul pays his payment from the money Harry pays him, Sam's Supply House can
A. tell Harry that Paul is indebted to Sam's Supply House, which automatically makes them a creditor beneficiary entitled to the payment.
B. have Paul assign his interests under the contract with Harry to Sam's Supply House.
C. require an accord and satisfaction be entered into.
D. have Harry assign his interests under the contract with Paul to Sam's Supply House.
6. Coretta and Mary find a property to purchase. They sign a written agreement that states the agreed-on price, closing date, and items that are to stay in the house. They forget to include the washer and dryer in the agreement, but the seller tells them he will leave them if they want them. Right before closing, they walk through the property and find that the washer and dryer have been removed. They purchase the property and sue the seller for not leaving the washer and dryer. Coretta and Mary most likely
A. won't win based on the statute of limitations.
B. won't win based on the statute of frauds.
C. will win based on the seller's representation when they looked at the property.
D. won't win based on the parol evidence rule.
7. Collin purchases a house, using a loan from Big Bank. As a condition of the loan, Big Bank requires that Collin purchase life insurance payable to Big Bank, to the extent of the outstanding mortgage, if Collin dies before fully paying the mortgage. Big Bank is
A. an incidental beneficiary but not a donee beneficiary.
B. both a creditor beneficiary and a donee beneficiary.
C. a creditor beneficiary but not a donee beneficiary.
D. an intended beneficiary but not a donee beneficiary.
8. Which of the following is an example of discharge by operation of law?
A. Xavier agrees to paint Rita's house for $1,000. Before Xavier can paint, Rita's house burns down.
B. Xavier agrees to paint Rita's house for $1,000. Rita later tells Xavier that she won't pay him. As a result, Xavier decides not to paint.
C. Xavier agrees to paint Rita's house for $1,000. Rita changes her mind and asks Xavier not to paint. Xavier agrees.
D. Xavier agrees to paint Rita's house for $1,000. Xavier paints, but before Rita pays him, she files bankruptcy. As a result, Xavier doesn't get paid.
9. Sara purchases life insurance on her own life and makes her husband, Dean, the beneficiary. Sara dies. Dean applies to the insurance company for payment of the proceeds. The insurance company denies payment, pointing out that Dean didn't sign the contract and therefore doesn't have privity of contract. Dean is
A. entitled to the proceeds as an incidental beneficiary.
B. entitled to the proceeds because he was married to Sara.
C. not entitled to the proceeds because he doesn't have privity of contract.
D. entitled to the proceeds as an intended beneficiary.
10. Robert contracts to paint Jake's house for $500. Robert then asks Elmer to perform the painting work for him. Elmer does a bad job, and Jake wants to sue for breach of contact. Which of the following is true?
A. Robert isn't responsible if he gave Jake notice of the delegation.
B. Robert is responsible for the breach of the contract only if there has been a novation.
C. Robert is responsible for the breach of the contract.
D. Elmer, but not Robert, is responsible for the breach.
11. Candice hires Otto to work as a tax preparer in Candice's tax return business. The employment contract restricts the ability of Otto to set up a competing business or engage in tax preparation services if Otto leaves Candice's employ. Otto discovers he likes this kind of work and wants to set up his own tax return business. He asks you whether the restrictions in his contract with Candice will be enforceable. You should tell him that
A. restrictive covenants regarding future employment will be enforceable if the value of the consideration given for the covenant equals the value of the income loss that would be caused by enforcing the agreement.
B. any restriction regarding employment will be enforceable as long as there was adequate consideration.
C. restrictive covenants regarding future employment will be enforceable if they're reasonable.
D. any restriction regarding employment is unenforceable as against public policy
12. Under tenant Lester's lease contract with landlord Mary, Lester must pay an extra $25 if his rent is more than five days late. This is an example of __________ damages.
13. Denise orally authorizes Shaun to sell her house. Shaun enters into a written agreement with Eric to sell him the house for $140,000. Both Shaun and Eric sign the contract. Denise learns of the agreement after the fact and decides she doesn't want to sell. If the contract is ruled unenforceable, the most likely reason is the __________ rule.
B. parol evidence
C. equal dignities
D. best evidence
14. Jack and Jane formed a contract in which Jack agreed to sell Jane a large amount of apples. Jack knew that Jane planned to resell the apples at the farmers' market the following weekend. Jack failed to deliver the apples as promised. Jane will most likely be able to recover
A. both nominal and punitive damages.
B. compensatory damages only.
C. punitive damages only.
D. both compensatory and consequential damages
15. Jordan is charged with a crime, and Jeff is chosen to be on the jury. Jordan offers to pay Jeff $500 if he votes not guilty. Jeff does so, but Jordan refuses to pay. Jeff sues Jordan for breach of contract. Jeff will
A. win because of the statute of frauds.
B. lose because the contract is usurious.
C. lose because the contract is against public policy.
D. win because Jordan materially breached.
16. Tom and Zeke enter into a contract for Tom to paint Zeke's house for $1,000. The contract doesn't specify a time for performance by Tom. Six years later, Tom shows up with a bucket of paint, paints the house, and demands payment. Which of the following is true?
A. Tom couldn't have breached the contract because the contract didn't specify a time for performance, and he did do the painting work.
B. The contract violates the statute of frauds.
C. Tom breached the contract because he didn't perform within a reasonable time.
D. The contract was unenforceable because it didn't specify a time for performance.
17. Bella and Connie are struggling to find jobs. They decide they want to open a child daycare center together. They see a house in the perfect neighborhood with a "For Sale by Owner." They talk to the owner, reach an agreement, and shake hands. Just before the closing on the house, at which they'll take ownership of the house, the owner decides not to sell to Bella and Connie. They tell the owner they're going to sue him for breach of contract. Bella and Connie most likely
A. will win because the owner shouldn't have entered into a contract with them if he wasn't sure he wanted to sell the house.
B. will win because the owner breached his agreement to sell them the house.
C. won't win because they can find another house that will work just as well.
D. won't win because they shouldn't have entered into an oral contract to buy the house.
18. Which of the following is an example of discharge by impossibility?
A. Jason agrees to paint Sheila's house for $1,000. Sheila changes her mind and asks Jason not to paint. Jason agrees.
B. Jason agrees to paint Sheila's house for $1,000. Sheila later tells Jason that she won't pay him. As a result, Jason decides not to paint.
C. Jason agrees to paint Sheila's house for $1,000. Before Jason can paint, Sheila's house burns down.
D. Jason agrees to paint Sheila's house for $1,000. Jason paints, but before Sheila pays him, she files bankruptcy. As a result, Jason doesn't get paid.
19. Tom and Zeke go out to a restaurant for dinner. Tom orders a steak, and Zeke orders lasagna. After they've finished eating, they pay their bill. Assuming all parties performed in the order they were required to under this contract, which of the following is true?
A. Service and payment were conditions concurrent.
B. Payment was a condition precedent to service.
C. Service was a condition precedent to payment.
D. There was no contract.
20. Tom and Zeke enter into a contract for Tom to paint Zeke's house for $1,000 by August 5th. Tom paints half of the house on August 6th, then demands pay. Which of the following is false?
A. Tom may not be in breach if the contract doesn't make time of the essence.
B. Tom's duties are discharged under the doctrine of substantial performance.
C. The contract doesn't violate the statute of frauds.
D. Zeke may have to pay if payment is a condition precedent to the duty to paint.
PART (5) :
1. David gives Ethel power of attorney. David then has a nervous breakdown and becomes insane. Ethel has the authority to act on David's behalf
A. if the power of attorney is a durable power of attorney.
B. with regard to personal property but not real property.
C. by necessity.
D. only until Tom regains his sanity.
2. Phil receives a job offer from Big Tech, Inc., in a letter that states, "If you leave your current position and join us, we will employ you for the next five years as our company expands." Phil takes the job, and he is fired after six months even though his work was satisfactory. If Phil sues and wins, the most likely reason is
A. the employment at-will doctrine.
B. promissory estoppels.
C. the state's right-to-work law.
D. express contract.
3. Lee hires Zeke to sell her house. She tells Zeke to ask for $200,000, but says she will take $175,000. Zeke's friend Victor asks Zeke about the house, and Zeke tells him that Lee will take $175,000. Victor offers $175,000, and Zeke accepts. Zeke violated his duty of
A. due diligence.
4. Steve is Jason's agent, and it's within Steve's authority as Jason's agent to purchase homes on Jason's behalf. Steve contracts with Albert to buy Albert's house for Jason. Steve, however, doesn't tell Albert that he's buying the house on Jason's behalf or that he's acting for another individual. Under the terms of the contract, which of the following statements is true?
A. Only Jason can be held liable.
B. Only Steve can be held liable.
C. Neither Steve nor Jason can be held liable.
D. Both Steve and Jason can be held liable.
5. Billy works as a freelance writer for Big Books. Billy works in his own home and has contact with Big Books only to receive and return writing projects. Billy is a/an __________ for Big Books.
C. independent contractor
6. Irene hires Mark to do work for her. In the course of performing that work, Mark causes injury to a third party. Which of the following statements is true?
A. Irene is liable for the injury whether Mark is an employee or an independent contractor.
B. If Mark is an employee, Irene is liable for the injury.
C. If Mark is an independent contractor, Irene is liable for the injury.
D. Irene isn't liable for the injury whether Mark is an employee or an independent contractor.
7. Polly hires Nick to sell her house and gives him power of attorney that authorizes him to do, but the power of attorney says nothing about price. Polly tells Nick to take nothing less than $200,000. Lola offers Nick $195,000 for the house, and Nick accepts. Zeke violated his duty of
C. due diligence.
8. Samantha hires Zack, a real estate agent, to sell her home. Samantha then goes sailing. While she is gone, the pipes in her house burst. The agent discovers this, is unable to reach Samantha, and hires a plumber to fix the pipes. The plumber sends the bill to Samantha. If Samantha has to pay, it's most likely based on agency by
9. Bob's company was found in violation of OSHA. The violation likely relates to
A. racial discrimination.
B. failure to pay overtime.
C. workers' compensation.
D. workplace safety.
10. Ted is a janitor at Big Deal, Inc. One night, Ted is cleaning the boss's office and sits in the boss's chair. At that moment, a salesman walks in, thinks Ted is a manager, and offers to sell Big Deal, Inc., 700 widgets for $100 each. Ted thinks this sounds like a good deal, assumes the boss will be pleased, and signs the contract as an agent for Big Deal, Inc. The boss discovers this deal the next day and is angry because widgets cost $27 each. If Big Deal is obligated under the agreement, it's based on __________ authority.
11. Carl, a little person with dwarfism, applies for a job. He is told he won't be hired because he is a little person. Carl sues, claiming discrimination under the Civil Rights Act. Which of the following statements is true?
A. Unless Carl can show that the height requirement has a disparate impact on short people, he has no claim.
B. Carl has a good claim.
C. Carl has no claim.
D. Unless the employer can show that being of a certain height is a bona fide job qualification, Carl has a good claim.
12. State right-to-work laws prohibit
A. employees from forming labor unions and bargaining units.
B. closed shops, but not union shops.
C. agreements requiring union membership to get or keep a job.
D. union shops, but not closed shops.
13. Shauna creates a Web site that sells shoes. Meagan chooses shoes, enters her credit card information, and purchases the shoes. She then receive an e-mail confirming the purchase. The Web site is programmed to perform these functions, and Shauna has no personal knowledge of the transaction. Shauna was on vacation at the time of the transaction and didn't personally approve it. She returns from vacation, checks the site, and discovers the transaction. Was a contract created?
A. No, because the computer isn't an agent for Shauna.
B. No, because Shauna never confirmed the purchase.
C. Yes, because agency by necessity applies.
D. Yes, because the computer is an agent for Shauna.
14. Sam gives Dennis a written power of attorney to sell his house. Though the power of attorney doesn't expressly authorize Dennis to do so, Dennis purchases an ad in the newspaper to advertise sale of the house. The newspaper sends a bill to Sam. If Sam is liable for the bill, it's most likely based on agency by
A. operation of law.
15. Molly borrowed $5,000 from Larry and, as collateral, gave him jewelry and authority to sell the jewelry if she defaulted. Afterward, Molly had second thoughts and revoked the agency. Which of the following statements is true?
A. Molly can't terminate the agency unless she claims bankruptcy.
B. Molly can terminate the agency if she paid the loan.
C. Molly can't terminate the agency unless Larry sold the jewelry.
D. Molly can terminate the agency based on impossibility of performance.
16. Bob's company was found in violation of ERISA. The violation likely relates to
A. workers' compensation.
B. workplace safety.
C. failure to pay overtime.
D. Bob's pension plan.
17. Bob works for the government and belongs to a union. Bob's union goes on strike. Which of the following statements is true?
A. If the strike is lawful, Bob must be a federal employee.
B. The strike is unlawful because only nongovernment employees can strike.
C. The strike is lawful because only government employees can strike.
D. If the strike is lawful, Bob must not be a federal employee.
18. Jane works for Big Business, Inc., as a sales representative. The boss decides to fire her because she isn't a Mets fan. The boss can
A. not fire Jane because of the Civil Rights Act of 1964.
B. fire Jane.
C. not fire Jane if she agrees to become a Mets fan.
D. not fire Jane if here work was satisfactory.
19. Norma has worked for Big Factory for 15 years, has never missed a day of work, and has always been an excellent worker. One day, without warning, Norma's supervisor fires her without any explanation. Norma knows of no reason for the termination. Which of the following statements is true?
A. Norma can't do anything as long as the reasons were nondiscriminatory.
B. Norma may file a bad faith action against her supervisor.
C. Norma can't do anything unless she lives in an employment-at-will jurisdiction.
D. Norma may file a bad faith action against Big Factory.
20. Javier gives written authorization to Tamara to sell his house. Javier dies on the October 4. On October 8, Tamara enters into a written contract on behalf of Javier to sell the house to Trudy for $100,000. Before Tamara entered into the contract, she showed the written authorization to Trudy. Javier's estate is
A. not liable.
B. obligated to sell for $100,000 because Tamara had express authority.
C. liable if Tamara knew Javier was deceased at the time of the contract.
D. liable if the price is fair.
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