BUS 263 Test 2 | Complete Solutions (Verified)

BUS 263 Test 2 | Complete Solutions (Verified) Fred agrees to assume a debt owed by Guitars Inc. to Home Bank. The agreement is not in writing. To be enforceable under the "main purpose" rule, the promise must be for the benefit of a. Home Bank. b. Fred. c. any third party, such as a Guitars Inc. customer. d. Guitars Inc. Duane and Evan orally agree to a transfer of forty acres of farmland. Evan asks Finance Bank to lend him the funds to buy the land. Under the Statute of Frauds, the agreement between Duane and Evan is enforceable by a. Finance Bank. b. Duane, Evan, or Finance Bank. c. Duane or Evan. d. none of the choices. Main St. Markets Inc. and Nature's Food Corporation discuss the terms of a contract. They exchange "signed" e-mails that summarize the terms on which they agree. Main St. begins to perform, but Nature's refuses to pay. Between Main St. and Nature's, the e-mails are a. a pre-contract. b. no contract. c. a written contract. d. an oral contract. Alice and Bart enter into a contract for the sale of Canyon Ranch. To be enforceable, this contract must be a. signed in a sufficient manner by both parties. b. in writing or evidenced by a written memorandum. c. substantiated by reliable, external evidence. d. all of the choices. Ray agrees to buy one hundred pounds of almonds from Sol. To be enforceable, the agreement must be in writing if the almonds cost at least a. $500. b. $499. c. $50. d. $250. Lewis tells a representative of Music Inc. that he will pay for Nora's trumpet if she does not. Lewis does not secure any personal benefit for this promise. This promise is enforceable as a contract a. only if Nora agrees to it. b. any of the choices. c. only if the value of the trumpet is more than $500. d. only if it is in writing. Merl buys a tablet for $500, running shoes for $200, and a set of the Game of Crowns books for $100. To be enforceable as a contract, a writing is required for the purchase of a. the books, the shoes, and the tablet. b. the shoes and the tablet only. c. the books only. d. the tablet only. Nate promises to pay for dental services provided by Otto to Polly. Nate receives no personal benefit for the promise. To be enforceable, the promise must be in writing if a. Otto's services will be provided in installments with separate payments. b. Nate promises to pay only if Polly does not pay. c. Polly also promises to pay. d. Nate assumes primary financial responsibility for the cost. Air Flo, Inc., and Banyan Grove Apartments enter into an oral contract in which Air Flo agrees to provide air-conditioning and heating maintenance for Banyan Grove's facilities for two years. This contract is enforceable by a. any third party, such as a HVAC supplies provider. b. Air Flo. c. none of the choices. d. Banyan Grove. Oscar orally agrees with Papa's Pizza Restaurant to provide delivery service to its customers for nine months. This contract is enforceable by a. either Oscar or Papa's. b. Papa's only. c. none of the choices. d. any interested third party, such as a Papa's customer. Physicians Clinic orders by phone seven boxes of single-use latex gloves from Quality Medical Supplies, Inc. After three boxes are delivered and accepted, Physicians Clinic repudiates the contract. Quality Medical can enforce the contract to a. no extent because the order was placed orally. b. the extent of the three accepted boxes. c. any extent because the order was placed orally. d. the extent of the four undelivered boxes. Builders Corporation files a suit against Concrete Company to enforce a written contract. If the court finds that the parties intended the contract to be the final statement of their agreement, parol evidence can be admitted to prove a. terms discussed before the contract but not contained in it. b. terms discussed at the time of the contract that contradict the written terms. c. nothing. d. an orally agreed-on condition. Gold Mines Inc. sells stock in a nonexistent gold mine to Harry in violation of a blue-sky law. Harry can sue the seller to recover profit that the seller realized from all investors in the mine. purchase price of stock. ng. value of the investment if it did exist. Rosa signs a covenant not to compete with her employer, Sales Corporation. A court decides that the covenant is unreasonably restrictive. Most likely, the court will ce it. m it to prevent any undue burden. e to enforce it unless the employer pays additional consideration. ate its effect over time. In determining procedural unconscionability, a court is most likely to consider whether provision deprived one party of the benefits of the agreement. provision left one party without a remedy for the other's nonperformance. of the choices. buyer had an opportunity to ask questions about the contract. Countrywide Trucking Inc. contracts with Dewey to transport crated goods to a certain destination for $5,000. Countrywide delivers the crates, but Dewey does not pay. Countrywide learns that the crates contained stolen goods. Countrywide can recover from Dewey goods but not $5,000. b.$5,000, but not the goods. of the choices. goods and $5,000. A covenant not to compete cts the public from unauthorized practitioners of certain professions. cts the public against actions that threaten the general welfare. a promise to refrain from competing in business with another. usurious. Lionel obtains a loan from Mortgage Company at an interest rate that exceeds the state's maximum. The lender has tted usury. ted a licensing statute. ed a scheme that involves the distribution of property by chance. ed in a restraint of trade Bay Mall requires its tenants to sign a lease that includes a clause releasing the landlord from liability in the event of injury to any person or property no matter who is at fault. This is exculpatory clause. adhesion contract. c.a covenant not to compete. illusory promise. Jim is an emergency medical technician (EMT). EMTs are prohibited by statute from working more than a certain number of consecutive hours. One month, Jim works more than the legal limit. He can get paid for hours up to the statutory maximum or the extra hours. ng. hours up to the statutory maximum but not more. hours up to the statutory maximum and the extra hours Fagin and Gretel agree to hijack a truck carrying a load of almonds. If Fagin later refuses to go through with the crime, Gretel can n damages in the amount of her own share of the illegal profits. n damages in the amount of her partner's share of the illegal profits. of the choices. ce the agreement. For a contract to be valid and enforceable, it must be formed for purpose, whether or not the purpose is legal. b.a financially beneficial purpose. purpose or no purpose, legal or otherwise. d.a legal purpose. A contract to do something that is prohibited by federal or state statute is ceable if the contract does not negatively affect society. ceable if the parties are ignorant of the prohibition. ceable if the parties are aware of the prohibition. orceable. Generally, licenses of certain professions ct the public against actions that threaten the general welfare. de a means of regulating certain businesses. de a means of taxing certain businesses. of the choices. A contract to commit a crime is orceable. ceable if the parties entered into the contract before the statute. ceable if the contract does not negatively affect society. ceable if the parties entered into the contract after the statute. Orin signs a covenant not to compete with his employer, Product Distribution, Inc. The covenant will be enforced if it res both parties to obtain business licenses. ves the employer from liability for any injury to Orin. of the choices. reasonable with respect to geographic area and duration. Doug agrees with Elin to sell prescription drugs illegally to Elin's friends for 25 percent of the take. Doug sells the drugs but keeps all of the money. Elin can enforce the deal. er the total amount of the sales. er her share of the money. er her costs but none of the illegal profit. Opal is a minor. In at least some states, Opal can enter into a legally binding contract when she es the age of majority. married. emancipated from her parents. of the choices. Steve relinquishes the right to his son Tanner's control, care, custody, and earnings. This act is al. ication. firmance. ipation. Blanche, a minor, enters into a contract to buy two all-season passes from Chalet Mountain Resort. The contract will be made enforceable if Blanche ies it. firms it. fies it. it. Whatever is reasonably needed to maintain a minor's standard of living, such as food, clothing, shelter, and medical services, is known as of the choices. saries. aries. ies. Jean, a minor, enters into a contract with Kino to plant and harvest thirty acres of Jean's mother's farm for a certain price. On reaching the age of majority, Jean does not state that she intends to be bound by the contract, but indicates an intent to abide by it. This is ed ratification. ss ratification. firmance. of the choices. . Ralph, a minor, enters into a contract with Seth for the installation, maintenance, and repair of an HVAC system in Ralph's Uncle Ted's warehouse. On reaching the age of majority, Ralph sends e-mail to Seth, stating that Ralph intends the contract to be binding. This is ss ratification. of the choices. firmance. ed ratification. Kristin, a minor, enters into a contract to buy a mower from Lawn Gear, a local store. The deal is set aside. Returning Kristin and Lawn Gear to their positions prior to the contract is known as tution. ipation. firmance. ication. Intoxicated, Hank enters a contract for the sale of ten acres of timberland to Ira for less than its market value. Later, Hank seeks to cancel the deal. In determining whether Hank can avoid his duties under the contract, a court is most likely to look at Hank's intoxicated mental state. b.Hank's intoxicated mental state and other factors. factors other than the Hank's intoxicated mental state. of the choices. Flake, a minor, enters into a contract to buy an electric guitar. Flake does not take possession or make payments. With respect to the contract, most courts would hold that this is ication. ipation. firmance. ssion. Chuck, a minor, signs a contract with Denise, an adult. The contract is voidable at the option of er party. b.Chuck only. c.Denise only. r party. Val, a minor, enters into a contract to buy a kayak and paddle from a Watercraft dealership. Later, after taking possession, Val disaffirms the deal. She keep both the kayak and paddle. keep the kayak but not the paddle.