Legal Environment of Business Exam 3 Review
- ✔✔When might a contract made by a mentally incompetent person be enforceable?
The incompetent person has not been declared incompetent by a court.
The incompetent person signs a second contract affirming that he understands the nature of the
contract.
The incompetent person was lucid at the time the contract was made.
The incompetent person has a court-appointed guardian, and that guardian is aware of the contract.
$5,000.00 in damages. - ✔✔Jordynne was the manager of Pets-R-Us, a pet store in Southern Valley
Mall. Pets-R-Us had a one-year lease, and rent payments were $2,000.00 per month. Five months
into the lease, Jordynne found a better site for the pet store. She notified Southern's manager,
vacated the mall, and moved her store to its new location. After two months, Southern was able to
re-lease the premises to another retail store, but at a reduced rent of $1,800.00 per month. If
Southern successfully sues Pets-R-Us, Southern will likely receive:
$14,000.00 in damages.
nothing, because Southern was successful in obtaining a new tenant for the property.
$4,000.00 in damages.
$5,000.00 in damages.
A contract cannot prevent an assignment of the right to receive funds.
%
Contracts that are for a service that depends on a particular skill or talent may not be delegated.
The assignee obtains only the rights that the assignor had under the contract. - ✔✔What legal
limitations are imposed on parties to assignments and delegations? Choose 3 answers.
A contract cannot prevent an assignment of the right to receive funds.
Contracts that are for a service that depends on a particular skill or talent may not be delegated.
The assignee obtains only the rights that the assignor had under the contract.
A valid delegation of duties relieves the delegator from the obligation to perform.
a contract has been breached.
when the parties never had a contract.
a contract has been rescinded. - ✔✔Restitution is an appropriate remedy when: (Select three)
an injunction is necessary.
a contract has been breached.
when the parties never had a contract.
a contract has been rescinded.
,A material breach results in damages to the non-breaching party, while an immaterial breach is minor.
- ✔✔What is the difference between a material breach and an immaterial breach?
A material breach results in damages to the non-breaching party, while an immaterial breach is minor.
A material breach is one that makes the contract commercially impracticable for the non-breaching
party.
A material breach is one for which remedies are not spelled out in the contract, while remedies for an
immaterial breach are specified.
A material breach is one that affects more than 50% of the product of the contract.
a ratication - ✔✔Mica, a minor, signs a contract to pay Natural Health Club a monthly fee for
twenty-fourmonths to use its facilities. Six months later, after reaching the age of majority,
Micacontinues to use the club. This act is
a disarmance
an emanicaption
a ratification
a restitution
a written "as is" statement - ✔✔An implied warranty of fitness for a particular purpose may be
properly disclaimed by which of the following?
an "all sales are final" statement
%
a verbal "as is" statement
a written "as is" statement
an email accompanying the receipt for an online order
an assignment - ✔✔McCall and Teresa enter into a contract for the distribution of McCall's produce
to localrestaurants for which Teresa agrees to pay. McCall transfers his right to payment under
thecontract to Midtown Bank. This transfer is
a delegation
an assignment
a novation
prohibited bylaw
an implied covenant of good faith and an implied covenant of fair dealing - ✔✔What implied terms do
all contracts include? Choose 2 answers.
an implied covenant of good faith
an implied agreement to timeliness
an implied agreement as to who will pay unexpected costs
, an implied covenant of fair dealing
an order for specific performance - ✔✔Which of the following is an equitable remedy for breach of
contract?
payment of the cost of cover for items not delivered on time
punitive damages when a seller has repeatedly shipped unsafe goods
an order for specific performance
compensatory damages for having to hire extra help to correct nonconforming goods
an unforeseen difficulty supported the contract modication - ✔✔Todos Ltd. agrees to supply United
Steel, Inc., with minerals from Venezuela. When the gov- ern ment is unexpectedly overthrown in a
revolution, Todos can obtain the goods only at amuch higher price. United agrees to pay but later les
a suit to recover the dierence. Thecourt will most likely rule that
a change in government is a risk ordinarily assumed in business
an unforeseen difficulty supported the contract modication
Todos engaged in extortion or the so-called holdup game
Todos had a preexisting duty to supply the goods at the initial price
anyprice - ✔✔Century Properties. Inc., and Broadview Capital Corporation enter into a con¬tract for
a sale ofland. To be enforceable, the contract must be in writing if the land is valued at
%
$50
$500
$5,000
anyprice
Article 2 - ✔✔Which section of the Uniform Commercial Code (UCC) applies to contracts for sales of
goods?
Article 2A
Article 3
Article 2
Article 4
as long as Julian has not yet accepted the offer. - ✔✔Owen offers to sell his motorcycle to Julian for
$5,000. After he makes the offer, Owen has second thoughts. Owen can revoke the offer to sell his
motorcycle to Julian:
at no time, because offers to sell merchandise are irrevocable.
even after Julian has accepted but before Julian has delivered the money to Owen.
- ✔✔When might a contract made by a mentally incompetent person be enforceable?
The incompetent person has not been declared incompetent by a court.
The incompetent person signs a second contract affirming that he understands the nature of the
contract.
The incompetent person was lucid at the time the contract was made.
The incompetent person has a court-appointed guardian, and that guardian is aware of the contract.
$5,000.00 in damages. - ✔✔Jordynne was the manager of Pets-R-Us, a pet store in Southern Valley
Mall. Pets-R-Us had a one-year lease, and rent payments were $2,000.00 per month. Five months
into the lease, Jordynne found a better site for the pet store. She notified Southern's manager,
vacated the mall, and moved her store to its new location. After two months, Southern was able to
re-lease the premises to another retail store, but at a reduced rent of $1,800.00 per month. If
Southern successfully sues Pets-R-Us, Southern will likely receive:
$14,000.00 in damages.
nothing, because Southern was successful in obtaining a new tenant for the property.
$4,000.00 in damages.
$5,000.00 in damages.
A contract cannot prevent an assignment of the right to receive funds.
%
Contracts that are for a service that depends on a particular skill or talent may not be delegated.
The assignee obtains only the rights that the assignor had under the contract. - ✔✔What legal
limitations are imposed on parties to assignments and delegations? Choose 3 answers.
A contract cannot prevent an assignment of the right to receive funds.
Contracts that are for a service that depends on a particular skill or talent may not be delegated.
The assignee obtains only the rights that the assignor had under the contract.
A valid delegation of duties relieves the delegator from the obligation to perform.
a contract has been breached.
when the parties never had a contract.
a contract has been rescinded. - ✔✔Restitution is an appropriate remedy when: (Select three)
an injunction is necessary.
a contract has been breached.
when the parties never had a contract.
a contract has been rescinded.
,A material breach results in damages to the non-breaching party, while an immaterial breach is minor.
- ✔✔What is the difference between a material breach and an immaterial breach?
A material breach results in damages to the non-breaching party, while an immaterial breach is minor.
A material breach is one that makes the contract commercially impracticable for the non-breaching
party.
A material breach is one for which remedies are not spelled out in the contract, while remedies for an
immaterial breach are specified.
A material breach is one that affects more than 50% of the product of the contract.
a ratication - ✔✔Mica, a minor, signs a contract to pay Natural Health Club a monthly fee for
twenty-fourmonths to use its facilities. Six months later, after reaching the age of majority,
Micacontinues to use the club. This act is
a disarmance
an emanicaption
a ratification
a restitution
a written "as is" statement - ✔✔An implied warranty of fitness for a particular purpose may be
properly disclaimed by which of the following?
an "all sales are final" statement
%
a verbal "as is" statement
a written "as is" statement
an email accompanying the receipt for an online order
an assignment - ✔✔McCall and Teresa enter into a contract for the distribution of McCall's produce
to localrestaurants for which Teresa agrees to pay. McCall transfers his right to payment under
thecontract to Midtown Bank. This transfer is
a delegation
an assignment
a novation
prohibited bylaw
an implied covenant of good faith and an implied covenant of fair dealing - ✔✔What implied terms do
all contracts include? Choose 2 answers.
an implied covenant of good faith
an implied agreement to timeliness
an implied agreement as to who will pay unexpected costs
, an implied covenant of fair dealing
an order for specific performance - ✔✔Which of the following is an equitable remedy for breach of
contract?
payment of the cost of cover for items not delivered on time
punitive damages when a seller has repeatedly shipped unsafe goods
an order for specific performance
compensatory damages for having to hire extra help to correct nonconforming goods
an unforeseen difficulty supported the contract modication - ✔✔Todos Ltd. agrees to supply United
Steel, Inc., with minerals from Venezuela. When the gov- ern ment is unexpectedly overthrown in a
revolution, Todos can obtain the goods only at amuch higher price. United agrees to pay but later les
a suit to recover the dierence. Thecourt will most likely rule that
a change in government is a risk ordinarily assumed in business
an unforeseen difficulty supported the contract modication
Todos engaged in extortion or the so-called holdup game
Todos had a preexisting duty to supply the goods at the initial price
anyprice - ✔✔Century Properties. Inc., and Broadview Capital Corporation enter into a con¬tract for
a sale ofland. To be enforceable, the contract must be in writing if the land is valued at
%
$50
$500
$5,000
anyprice
Article 2 - ✔✔Which section of the Uniform Commercial Code (UCC) applies to contracts for sales of
goods?
Article 2A
Article 3
Article 2
Article 4
as long as Julian has not yet accepted the offer. - ✔✔Owen offers to sell his motorcycle to Julian for
$5,000. After he makes the offer, Owen has second thoughts. Owen can revoke the offer to sell his
motorcycle to Julian:
at no time, because offers to sell merchandise are irrevocable.
even after Julian has accepted but before Julian has delivered the money to Owen.
