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Do not change the font and do not put in any punctuation or other marks in the answer sheet; put only the letter choice of your answer. Also, do not put any spaces before or after the letter you enter as your answer. Be sure to turn off the automatic completion function of cell entries. On the Tools menu, click Options, and then click the Edit tab. Clear the Enable Autoclave for cell values check box. Please put only your last name on the Answer Sheet in the by writing it in the yellow space. 1. With regard to the court, adequacy of consideration means: A.
The court will adjust the consideration if the value exchanged is unfair. B. The consideration exchanged must be exactly equal in value. C. The court doesn’t care about value as long as the mutual assent is valid. D. The consideration exchanged must be reasonably close in value. 2. Bill gets many speeding tickets. His friend Ron told Bill that he would pay Bill $300 if he did not get a ticket for one year. Bill drove very cautiously for the next year and did not get a ticket. Is Ron obligated to pay? A. Yes, because Bill gave up a legal right based on the agreement.
B. No, because $300 is not an adequate amount based on Bill’s detriment. C. Yes, because a promise is a promise and consideration has nothing to do with this agreement. D. No, cause Bill suffered no detriment in this agreement. Page 2 of 6 LAW 421 – Quiz 3 – 7. 01. 14 3. Excursions Inc. (Excursions) ordered 300 kayaks from Seafarer’s, Inc. (Seafarer’s), with delivery to be made on April 20. The kayaks will used during the upcoming season. Under which circumstance may Excursions claim anticipatory repudiation? A.
The popularity of kayaking has suddenly decreased and Excursions isn’t sure it can use 300 kayaks during the upcoming season. B. The cost of kayaks has tripled owing to worldwide demand, lowering Seafarer’s profit margin. Yet Seafarer’s insists that it will honor the contract with Excursions. C. Excursions have found another manufacturer that can provide less expensive kayaks of the same quality as Seafarer’s kayaks. D. Seafarer’s only manufacturing plant burned down on January 1 5, yet Seafarer’s insists that it will rebuild the plant and honor the contract with Excursions. 4.
Ronald contracted with Quality Hotel (Quality) to rent a room for a weekend while at a business meeting in the city. The contract with Quality required a $50 deposit with the remaining balance due on check-in. The deposit was nonrefundable unless the reservation is cancelled at least 36 hours prior to check in. The day before he was to eave for the resort, Arnold’s boss called off the business meeting. Ronald called Quality, canceled the reservation, and demanded a refund of his deposit. A. Ronald will get the refund because of impossibility of performance; he can’t attend a business meeting that isn’t going to be held.
B. Ronald will get the refund because of frustration of purpose; his intention was to attend a business meeting that is no longer being held. C. Quality is not required to provide a refund. D. Ronald will get the refund because of impracticability; he doesn’t need a room to attend a business meeting that isn’t going to be held. 5. Paul contracted with Dan to buy some land on behalf of Developers, Inc. Developers told Paul to use Pall’s own name and not to disclose to Dan that Paul was working for Developers. Paul signed the contract in his own name only. Developers refused to honor his arrangement with Paul.
A. Paul is liable, but may sue Developers based on failure of loyalty. B. Paul can’t be sued because he’s only an agent. C. Developers has no liability to anyone since his name was never disclosed. D. Paul is liable, but may sue Developers based on indemnification. 6. Which of the following is not an exception to the employment-at-will doctrine? A. An employee is working under an implied employment contract. B. An employee’s termination violates a public policy or statutory right. C. An employee is terminated but has received excellent evaluations and the employer cannot give a reason for the dismissal.
D. An employee is working under an express employment contract. Page 3 of 6 LAW 421 – Quiz 3 – 7. 01. 14 7. Big Box Inc. (Big Box) was hiring a security guard for one of its stores. On its application, Big Box asked whether the applicant had ever been arrested. Bob applied for a Job at Big Box and answered no to the question. He also answered no to a question asking if there was any reason that he would not be qualified to work as a security guard. Soon after Bob was hired, he hit a customer. It was discovered at trial that Bob had been fired from numerous Jobs for abusing customers and other offenses.
If the customer sued Big Box: A. Big Box would not be liable because it made a good faith effort to screen applicants by specifically asking about past indiscretions. B. Big Box would not be liable because Bob was supposed to control customers. C. Big Box would be liable for negligent hiring. D. Big Box would be liable for negligent retention. 8. With regard to whistle-blowers: A. Every state law protects both government and private employees from retaliation. B. Employers may terminate whistle-blowers if they can prove a reason for termination independent of retaliation for the whistle blowing. C.
There is no federal whistle-blower act. D. Based on the employment-at-will doctrine, employers may terminate whistle- blowers without proving a reason independent of retaliation for the whistle blowing. 9. Rupert hired Calvin to drive a car to a site 75 miles away. Rupert specified the route that Calvin was to take and told him to be sure to arrive by 4:30 pm. On the ay, Calvin became hungry and decided to stop to eat. He had plenty of time to stop, eat, and still make the deadline. He went too restaurant that was three miles off the route that Rupert had specified. Calvin did not call Rupert to ask for permission.
On the way to the restaurant, Calvin failed to stop ATA red light and hit Cam’s car. Sam sued Calvin and Rupert. A. Rupert will lose because Calvin was on a frolic, so Rupert is liable B. Rupert will win because Calvin was on a detour, freeing Rupert from liability C. Rupert will lose because Calvin was on a detour, so Rupert is liable D. Rupert will win because Calvin as on a frolic, freeing Rupert from liability 10. Adam accepted a new Job. Which of the following is not a contract condition related to that Job? A. Adam will receive a bonus provided that he obtains 25 new clients within 30 days. B.
Dam’s medical and dental benefits will start after he has worked for seven months. C. Dam’s salary will be $1,200 a week. D. Adam cannot begin work until he passes a drug test. 11. The IRS has developed a three-part test to determine an agent’s status. Which of the following is not an element in this test? A. Whether the working relationship is written or oral B. He type of working relationship between the parties C. Behavioral aspects of the parties D. The financial arrangements between the parties Page 4 of 6 LAW 421 – Quiz 3 – 7. 01. 14 12. Ernie worked as a delivery driver for a local fast food restaurant.
His duties consisted of making deliveries along a designated route. One day Ernie decided to visit his friend, who lived 8 miles out of his delivery route. While driving to his friend’s house, Ernie injured a pedestrian, Alvin. The accident was caused because of Ermine’s negligent driving. Alvin sued both Ernie and the restaurant for personal injuries. Under the circumstances: A. The restaurant is never liable for the negligent acts of its agents. B. The restaurant is liable under the doctrine of respondent superior. C. The restaurant is not liable because Ernie was on a frolic of his own. D.
Alvin can recover damages from both the restaurant and Ernie. 13. James wanted to have a pool built at his house. He called Patio Construction, Inc (Patio). When Patio came to give James a price, it did some soil tests and discovered no problems. Patio quoted $1 5,500 for the pool. However, when it begin excavating for the pool, Patio discovered solid rock few feet below ground level. Patio stopped work and informed James that, due to the rock, it will have to use explosives to remove the rock and that the cost of the pool would now be $18,000. A. James is under contract and will have to pay the new price. B.
James can have the contract discharged based on impracticability. C. James can have the contract discharged based on frustration of purpose. D. James can have the contract discharged based on impossibility. 14. Jake advertised his scooter for sale. The scooter doesn’t start easily in damp weather. Adam was looking for a scooter to use at his home, which near the seacoast, which he told Jake. Jake said nothing. Adam bought the scooter, brought it to his house, where Adam often had trouble getting it to start on damp mornings. A. Jake has committed a fraudulent misrepresentation because he withheld a material fact.
B. Jake has not committed a fraudulent misrepresentation because Adam didn’t specifically ask if the scooter started easily in damp weather. C. Jake has committed an innocent misrepresentation because he didn’t state a lie, but only withheld all of the truth. D. Jake has not committed a fraudulent misrepresentation because silence cannot be considered a fraudulent misrepresentation. 15. In which of the following scenarios would enforcement of specific performance be appropriate? A. You ordered a stereo from an electronics store and a few days later it breached by not ordering it from the manufacturer.
B. A store agreed to order a laptop computer for you, but breached its contract with you by canceling the order the next day. C. You ordered 50 cubic yards of crushed from a local store and it breached by not delivering or making the stone available to you. D. You contracted to buy an antique clock to add to your art collection; but, despite the contract, the owner refused to sell at the last minute. 16. Which of the following is the true statement? A. Apparent authority is based on what the principal communicates to the agent and not to the third party. B.
Actual authority must be expressly created and cannot be based on custom or past dealings. C. Actual authority must always be expressed in writing. D. Ratification applies to previously unauthorized acts. Page 5 of 6 LAW 421 – Quiz 3 – 7. 01. 14 17. Jim contracted with Gardeners Inc. To plant some trees in Jims back yard. Jim was to purchase the trees. The contract with Gardeners was solely for planting. Payment was to be 25% at the time that the work commenced and 75% once the Reese were planted. Jim purchased the trees and paid Gardeners the 25%. Gardeners began work.
When Gardeners was half way through the Job, Jim changed his mind about having trees planted, so he refused Gardeners access to the yard. If Gardeners wanted to rescind the contract and be paid for work completed, it would sue for: A. Consequential damages. B. Compensatory damages. C. Restitution. D. Liquidated damages. 18. Marine, Inc. Advertised a canoe on sale. The normal price is $1,250 and the sale price should have read $950, but the advertisement stated $750. Sam went into the tore and demanded to purchase the canoe at the advertised price of $750. Which of the following is correct? A.
The court will adjust the consideration, if the value exchanged is unfair. B. The court doesn’t care about value, as long as the mutual assent is valid. C. The consideration exchanged must be exactly equal in value. D. The consideration exchanged must be reasonably close in value. 19. In which of the following situations is the agent not liable should the principal breach the contract with the third party? A. Agents are liable in all agency situations B. Undisclosed agency C. Partially disclosed agency D. Disclosed agency 0. Bobby entered into a contract with Eddie. Subsequently, Bobby assigned his rights in that contract to Jake.
Which of the following would not prevent that assignment? A. The contract contains an anti-assignment clause. B. The assignment would materially alter Eddies duties and cause an increased burden or risk to Eddie. C. Eddie protests the assignment and demands that Bobby not make the assignment. D. The assignment would violate public policy matters. 21 . Which of the following is the best explanation of the parole evidence rule? A. Oral agreements may be used to change a final written contract if the final written entrant isn’t exactly conforming to the pre-contract agreements. B.
Written contracts with ambiguous terms are automatically void and cannot be corrected. C. Written agreements may be used to change a final written contract if the final written contract isn’t exactly conforming to the pre-contract agreements. D. A written contract is the final expression of the party’s agreement and may not be contradicted by oral or written agreements made prior to the writing. 22. Ralph was a driver for Discount Appliances, Inc. (Discount) and made deliveries to customers. One day, Ralph negligently secured a fridge on the back of his truck and, hill driving, the fridge fell out of the truck and hit Jims car.
Which of the following is correct? A. Both Ralph and Discount are liable. B. No one is liable, it was an accident. C. Ralph is liable, but not Discount. D. Discount is liable, but not Ralph. Page 6 of 6 LAW 421 – Quiz 3-7. 01. 14 23. Richard called Jeff asking him to referee a game. Jeff is not obligated to work the game. If Jeff accepts the assignment and works the game, he would be told the time of the game, he would be required to wear an approved uniform, and he would be paid a fee. Once at the game, Jeff would be in complete control. Jeff is considered a/an: A. Principal. B. Independent contractor. C. Agent. D. Employee. 24. In which of the following situations will the court enforce a contract? A. Kevin offered to sell his boat to Dave for $12,500. Dave replied that was too much and said, “I’ll give you $10,000 for it,” Kevin said no. The next day Dave called Kevin and said, “l accept. ” B. Kevin offered to sell his boat to Dave. Dave asked for 24 hours to decide and Kevin agreed. At midnight, the boat sank, although neither Dave nor Kevin knew it sank. Dave called Kevin before the 24 hours was over and said, “l accept”. C. Kevin offered to sell his boat to Dave.
Dave asked for some time to decide and Kevin gave him until 7:00 pm. At 5:00 pm, Dave saw Adam painting the boat and was told that Kevin sold it to him. Dave called Kevin at 6:00 pm and said “l accept”. D. Kevin offered to sell his boat to Dave. Dave asked for more time and Kevin said you may have until 11:00 am the next morning. Dave gave Kevin $150 for him to keep the offer open to him, which was nonrefundable. Kevin died during the night and, after hearing that Kevin died, Dave called Seven’s heirs at 10:00 am the next morning and accepted Seven’s offer.
When Paul came home from work, he found that all the snow from a recent storm had been removed from his yard. An hour later, a boy came to Pall’s door to collect payment for the work. Paul refused to pay him because he had never seen the boy before, nor had he hired him to do the work. Which of the following is accurate? A. This is an implied, unilateral contract, therefore, he must pay. B. Paul received unjust enrichment, so a quasi contract was formed and he must pay. C. Paul would not have to pay anything. D. To be fair to both parties, the court would make Paul pay the reasonable coos