CLC 222 Module 2- 3 Comprehensive Exam || Questions & Answers (Graded A+)

CLC 222 Module 2- 3 Comprehensive Exam || Questions & Answers (Graded A+) CLC 222 Module 2- 3 Comprehensive Exam || Questions & Answers (Graded A+) Lee repairs high‐speed looms for Sew Corp., a clothing manufacturer. Which of the following circumstances best indicates that Lee is an employee of Sew and not an independent contractor? - ANSWER - Lee is paid weekly by Sew. Knight signed a lease specifying that if the $400‐per‐month rent was not received by the fifth of each month, Knight would owe the landlord $25 as liquidated damages for every day that the rent was late. In January, Knight failed to pay the rent until the 21st of the month. The landlord insisted that Knight pay $800 because Knight owed $400 for the rent and $400 in late charges. What is most likely to be a court's ruling? - ANSWER - The late charges constituted a penalty because they were excessive. On May 1, Frost entered into a signed contract for the sale of 5,000 pounds of sugar to Kemp Co. at $.30 per pound. Delivery was to be made on June 10. Due to a sudden rise in sugar prices, Frost sent Kemp a letter stating that it would not sell the sugar to Kemp. Kemp received the letter on May 15 at which time the market price of sugar was $.40 per pound. Although Kemp could have reasonably purchased sugar elsewhere in the market, it chose not to do so. On June 10, the market price of sugar was $.50 per pound. In addition to incidental damages, Kemp is entitled to damages of Correct! - ANSWER - $500 Cain and Zen Corp. orally agreed that Zen would specially manufacture a machine for Cain at a price of $40,000. After Zen completed the work at a cost of $30,000, Cain notified Zen that it no longer needed the machine. Zen is holding the machine for Cain and has requested payment from Cain. Despite making reasonable efforts, Zen has been unable to resell the machine for any price. Zen has incurred warehouse fees of $500 for storing the machine. If Cain refuses to pay Zen and Zen sues Cain, the most Zen will be entitled to recover is - ANSWER - $40,500 Love granted Nelson a written option to buy a tract of land in an industrial park. The option stated that it was irrevocable for 11 days and was given for $20 and other valuable consideration. The $20 was not paid and there was no other valuable consideration. Which of the following is a correct statement regarding the option in question? - ANSWER - It is unenforceable because it lacks consideration. Sly was a general agent of the Cute Cosmetics Company with authority to sell, make collections, and adjust disputes. Sly was caught padding his monthly expense account by substantial amounts and was dismissed. Cute hired another general agent, Ready, to replace Sly. Ready was slowly but steadily calling on Sly's accounts to make sales and was informing them that Sly's services had been terminated. Cute also published a notice in the appropriate trade journals and the local newspaper announcing the replacement of Sly with Ready. Sly, after he was let go, called on all the customers who had outstanding accounts payable, quickly made whatever collections he could in cash, and absconded. Which of the following statements is correct regarding Cute's legal right against the customers? - ANSWER - Cute will have to absorb the loss unless Cute can prove the customers had actual notice of Sly's dismissal. Which of the following will make a contract voidable?