BUS 250 TEST 3 UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Question:
1. because the UCC was enacted by Congress, it is federal
law
Answer:
false
Question:
2. Sam signed a contract to purchase a car from a dealer,
Otto, for $15,000. However, when the contract was
examined closely, a decimal point was inadvertently put
in and the contract called for Sam to get the car for $150.
Sam is attempting to enforce the contract against Otto
for $150. Otto files suit and wants the court to change the
contract to $15,000, which he claims the true intent of the
parties. What remedy should Otto pursue with the court?
Answer:
reformation
Question:
3. Art contracted to purchase Victor's custom 1957 Chevy
Bel Air car for $50,000, with payment and delivery of the
car to be made five days after the contract was made.
Two days later Art heard the Victor was going to sell the
car to Michael the next day for $60,000. If Art really wants
the Chevy, what should he do to stop Victor selling it to
Michael?
Answer:
immediately seek injunctive relief
Question:
4. every state except Louisiana has adopted (or
substantially all) of Article 2 of the UCC
Answer:
true
,Question:
5. if a party has been delivered nonconforming goods and
has rejected them and is then forced to cover in order to
maintain business operations, the party may sue the seller
for the difference in price plus consequential damages.
Answer:
true
Question:
6. Ginger signed a contract with Trickyco, a large
corporation, it was a standard preprinted contract. There
was no bargaining for the terms of the contract and
Ginger was offered it on essentially a take-it-or-leave-it
basis. The type of contract is known as a/an
Answer:
adhesion contract
Question:
7. The completion of a contract when both parties no
longer have obligations under it because they have
performed everything in good faith is known as
Answer:
discharge
Question:
8. Uncle Phineas has lent you $10,000 to pay tuition and
other school-related costs. You've now graduated, and
Uncle Phineas is asking about repayment terms. The loan
was never evidenced in writing. This transaction falls
within the statute of frauds.
Answer:
false
Question:
9. Ralph calls Alice and asks her out on a date to see a
movie. Alice agrees. This is the type of promise that the
courts will enforce as a contract.
Answer:
false
, Question:
10. Jake lost his wallet and put an ad in the online student
newspaper saying "Lost wallet. Reward $100. Call Jake."
Melanie, a classmate of Jake's, saw the ad, and spent two
days looking for the wallet, missing three classes. Jake
later found his wallet in the student parking lot. When
Jake found out about all the work Melanie had done, he
thanked her, but didn't give her $100 or anything for her
troubles. Which of the following is true of this situation?
Answer:
Jake offered a unilateral contract, and Melanie is entitled to nothing because she
did not perform.
Question:
11. most contracts require a specific formal or ceremony
Answer:
false
Question:
12. Aaron has entered into a contract with Wilson for Aaron
to mow Wilson's lawn each week in consideration of
$50.00, which is a fair price for the service. Wilson is
elderly and suffers from dementia and was unable to
understand the nature of the contract he was signing.
Aaron was not aware that Wilson had dementia, and
Wilson had not been legally declared to be incompetent
at the time the contract was signed. What is the legal
status of this agreement?
Answer:
it is a voidable contract
Question:
13. Darnell ordered 500 frisbees with. his company logo on
them for Jennifer's Ad Specialties. Jennifer's refused to
turn over the frisbees, even after Darnell had paid in full.
Darnell has gone to court to obtain an order compelling
Jennifer's to send him the frisbees. Which type of
equitable remedy is Darnell seeking?
Answer:
specific performance
CORRECT ANSWERS
Question:
1. because the UCC was enacted by Congress, it is federal
law
Answer:
false
Question:
2. Sam signed a contract to purchase a car from a dealer,
Otto, for $15,000. However, when the contract was
examined closely, a decimal point was inadvertently put
in and the contract called for Sam to get the car for $150.
Sam is attempting to enforce the contract against Otto
for $150. Otto files suit and wants the court to change the
contract to $15,000, which he claims the true intent of the
parties. What remedy should Otto pursue with the court?
Answer:
reformation
Question:
3. Art contracted to purchase Victor's custom 1957 Chevy
Bel Air car for $50,000, with payment and delivery of the
car to be made five days after the contract was made.
Two days later Art heard the Victor was going to sell the
car to Michael the next day for $60,000. If Art really wants
the Chevy, what should he do to stop Victor selling it to
Michael?
Answer:
immediately seek injunctive relief
Question:
4. every state except Louisiana has adopted (or
substantially all) of Article 2 of the UCC
Answer:
true
,Question:
5. if a party has been delivered nonconforming goods and
has rejected them and is then forced to cover in order to
maintain business operations, the party may sue the seller
for the difference in price plus consequential damages.
Answer:
true
Question:
6. Ginger signed a contract with Trickyco, a large
corporation, it was a standard preprinted contract. There
was no bargaining for the terms of the contract and
Ginger was offered it on essentially a take-it-or-leave-it
basis. The type of contract is known as a/an
Answer:
adhesion contract
Question:
7. The completion of a contract when both parties no
longer have obligations under it because they have
performed everything in good faith is known as
Answer:
discharge
Question:
8. Uncle Phineas has lent you $10,000 to pay tuition and
other school-related costs. You've now graduated, and
Uncle Phineas is asking about repayment terms. The loan
was never evidenced in writing. This transaction falls
within the statute of frauds.
Answer:
false
Question:
9. Ralph calls Alice and asks her out on a date to see a
movie. Alice agrees. This is the type of promise that the
courts will enforce as a contract.
Answer:
false
, Question:
10. Jake lost his wallet and put an ad in the online student
newspaper saying "Lost wallet. Reward $100. Call Jake."
Melanie, a classmate of Jake's, saw the ad, and spent two
days looking for the wallet, missing three classes. Jake
later found his wallet in the student parking lot. When
Jake found out about all the work Melanie had done, he
thanked her, but didn't give her $100 or anything for her
troubles. Which of the following is true of this situation?
Answer:
Jake offered a unilateral contract, and Melanie is entitled to nothing because she
did not perform.
Question:
11. most contracts require a specific formal or ceremony
Answer:
false
Question:
12. Aaron has entered into a contract with Wilson for Aaron
to mow Wilson's lawn each week in consideration of
$50.00, which is a fair price for the service. Wilson is
elderly and suffers from dementia and was unable to
understand the nature of the contract he was signing.
Aaron was not aware that Wilson had dementia, and
Wilson had not been legally declared to be incompetent
at the time the contract was signed. What is the legal
status of this agreement?
Answer:
it is a voidable contract
Question:
13. Darnell ordered 500 frisbees with. his company logo on
them for Jennifer's Ad Specialties. Jennifer's refused to
turn over the frisbees, even after Darnell had paid in full.
Darnell has gone to court to obtain an order compelling
Jennifer's to send him the frisbees. Which type of
equitable remedy is Darnell seeking?
Answer:
specific performance
