BUL4310 EXAM 2 COMPREHENSIVE EXAM QUESTIONS
WITH DETAILED VERIFIED AND 100% ACCURATE
ANSWERS BRAND NEW EXAM ALREADY GRADED (A+
PASS)
1. True or False: Sam, a known alcoholic who lives next door, comes
over one day and says
that since you have been such a great neighbor, he will sell you his
$100,000 house for
only $60,000. Sam is obviously intoxicated. You immediately agree and
draft a contract
for the sale. Sam signs it and leaves, but a week later he comes to you
and claims he
didn't know what he was doing and wants to disaffirm the contract. Sam
is legally bound
to the terms of the contract. Ans✓✓✓ Answer: False. A key fact is that
this home worth $100,000 was sold for $60,000 - a
vastly low price that the neighbor must have known was ridiculously
low. There was no
other consideration to compensate for that huge differential. Thus the
neighbor was
put on notice that a mistake or that Sam - known to be a drunkard, and
obviously
intoxicated - was incapacitated. See LSB 232 - Habitual drunkard
statutes. Barron's
page 122
,2. Sidney and Halle create an integrated contract that completely and
unambiguously lays
out the terms of their agreement. Sidney is to wash Halle's car with soap
and water,
vacuum every room in her house, and mow her lawn. Halle is to pay
Sidney $200 for all
of this. A dispute erupts between the two parties over the terms of their
contract. Halle
argues that Sidney had mentioned that Sidney would wax the car, also.
Halle attempts to
offer evidence that Sidney agreed to wax it and even asked what kind of
wax to use. True
or False: Ordinarily, Halle can present that evidence. Ans✓✓✓ Answer:
False. LSB 251-252. In an integrated contract, courts must stick to the
express
terms of the contract and exclude any extraneous evidence. Here, the
contract
specifically only mentions soap and water.
3. True or False: Seeking an order of specific performance can serve as a
valuable post
judgment bargaining tool to induce a losing defendant to agree to a new
contract more
attractive to the plaintiff. Ans✓✓✓ Answer: True. Barron's page 158-
159. "Specific Performance" covers this question.
LSB 277 covers this as well.
,4. Sal owns a baseball card store and is selling a Rob Emerson rookie
card for 50 cents.
Thirteen-year-old Timmy comes in and buys the card. As Timmy walks
out, Sal opens a
price guide and sees that the card has gone up in value since the last
issue, to $500. He
catches Timmy outside the store and tells Timmy that he made a mistake
and the card
must be returned or Timmy must pay the $500. True or False: Timmy
must return the
card or pay the $500. Ans✓✓✓ Answer: False, mistake in value is not
valid grounds for voiding a contract and
unilateral mistake by the party best suited for catching such a mistake is
not voidable.
Timmy's infancy cannot be used against him. LSB 216-217;
Supplemental Information
Text
5. True or False: Under Common Law, offers can be revoked at any time
before acceptance,
unless the parties have agreed to an "option" contract to keep it open.
Ans✓✓✓ Answer: True. See Barron's pages 89-91; LSB 197;
Supplemental Information Text
, 6. True or False: A merchant's failure to answer a customer's material
question about the
merchant's goods generally will not suffice as an element of fraud.
Ans✓✓✓ Answer: False. Silence is not a fraud, but failure to answer a
question is. See LSB 224-
225; Lectures; Barron's page 107
7. True or False: Countries with a more liberal (in other words, less
formalistic)
interpretation of contracts usually have a higher economic growth rate.
Ans✓✓✓ Answer: True. Lectures.
8. Jane walks into an electronics shop to look at stereos. She finds a
stereo that has labels on
it reading "all the features you could want and more." Jane decides to
purchase the stereo.
The store clerk tells Jane that she has ten days to try out the stereo risk-
free, during which
she can return it for a full refund. A month later, Jane brings back the
stereo and says that
it does not have surround-sound features as she originally thought it
must, and therefore
she wants her money back. The clerk refuses. Choose the best answer:
A. Jane ordinarily could get a court to order the return of her money (in
exchange for the
WITH DETAILED VERIFIED AND 100% ACCURATE
ANSWERS BRAND NEW EXAM ALREADY GRADED (A+
PASS)
1. True or False: Sam, a known alcoholic who lives next door, comes
over one day and says
that since you have been such a great neighbor, he will sell you his
$100,000 house for
only $60,000. Sam is obviously intoxicated. You immediately agree and
draft a contract
for the sale. Sam signs it and leaves, but a week later he comes to you
and claims he
didn't know what he was doing and wants to disaffirm the contract. Sam
is legally bound
to the terms of the contract. Ans✓✓✓ Answer: False. A key fact is that
this home worth $100,000 was sold for $60,000 - a
vastly low price that the neighbor must have known was ridiculously
low. There was no
other consideration to compensate for that huge differential. Thus the
neighbor was
put on notice that a mistake or that Sam - known to be a drunkard, and
obviously
intoxicated - was incapacitated. See LSB 232 - Habitual drunkard
statutes. Barron's
page 122
,2. Sidney and Halle create an integrated contract that completely and
unambiguously lays
out the terms of their agreement. Sidney is to wash Halle's car with soap
and water,
vacuum every room in her house, and mow her lawn. Halle is to pay
Sidney $200 for all
of this. A dispute erupts between the two parties over the terms of their
contract. Halle
argues that Sidney had mentioned that Sidney would wax the car, also.
Halle attempts to
offer evidence that Sidney agreed to wax it and even asked what kind of
wax to use. True
or False: Ordinarily, Halle can present that evidence. Ans✓✓✓ Answer:
False. LSB 251-252. In an integrated contract, courts must stick to the
express
terms of the contract and exclude any extraneous evidence. Here, the
contract
specifically only mentions soap and water.
3. True or False: Seeking an order of specific performance can serve as a
valuable post
judgment bargaining tool to induce a losing defendant to agree to a new
contract more
attractive to the plaintiff. Ans✓✓✓ Answer: True. Barron's page 158-
159. "Specific Performance" covers this question.
LSB 277 covers this as well.
,4. Sal owns a baseball card store and is selling a Rob Emerson rookie
card for 50 cents.
Thirteen-year-old Timmy comes in and buys the card. As Timmy walks
out, Sal opens a
price guide and sees that the card has gone up in value since the last
issue, to $500. He
catches Timmy outside the store and tells Timmy that he made a mistake
and the card
must be returned or Timmy must pay the $500. True or False: Timmy
must return the
card or pay the $500. Ans✓✓✓ Answer: False, mistake in value is not
valid grounds for voiding a contract and
unilateral mistake by the party best suited for catching such a mistake is
not voidable.
Timmy's infancy cannot be used against him. LSB 216-217;
Supplemental Information
Text
5. True or False: Under Common Law, offers can be revoked at any time
before acceptance,
unless the parties have agreed to an "option" contract to keep it open.
Ans✓✓✓ Answer: True. See Barron's pages 89-91; LSB 197;
Supplemental Information Text
, 6. True or False: A merchant's failure to answer a customer's material
question about the
merchant's goods generally will not suffice as an element of fraud.
Ans✓✓✓ Answer: False. Silence is not a fraud, but failure to answer a
question is. See LSB 224-
225; Lectures; Barron's page 107
7. True or False: Countries with a more liberal (in other words, less
formalistic)
interpretation of contracts usually have a higher economic growth rate.
Ans✓✓✓ Answer: True. Lectures.
8. Jane walks into an electronics shop to look at stereos. She finds a
stereo that has labels on
it reading "all the features you could want and more." Jane decides to
purchase the stereo.
The store clerk tells Jane that she has ten days to try out the stereo risk-
free, during which
she can return it for a full refund. A month later, Jane brings back the
stereo and says that
it does not have surround-sound features as she originally thought it
must, and therefore
she wants her money back. The clerk refuses. Choose the best answer:
A. Jane ordinarily could get a court to order the return of her money (in
exchange for the
