BULE 303 TEST 3 UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Question:
1. Paul goes to a bar, has seven shots of whiskey, and then goes to an electronics store and buys a $2,500
stereo system. If he later wants to avoid the contract based on his intoxication when he bought it, he will
need to prove that
Answer:
he lacked the mental capacity to enter into the contract
Question:
2. Carol's car was hit while it was parked. Carol calls A-1 Towing, tells the dispatcher the car needs to be
towed, and gives her location. Carol never mentions a price and leaves before the tow truck arrives, so she
does not talk with the driver or sign any documents. Carol
Answer:
owes the company for towing her car under an implied contract
Question:
3. Keisha contracts with a broker to invest all of her savings. The year goes badly, and she loses almost all
the money. She is too ill to return to work and will be penniless if she cannot avoid the contract. Which of
the following applies?
Answer:
She has no legal recourse
Question:
4. Patricia drives to her favorite gas station and tells the attendant to fill her tank. The attendant asks
Patricia what grade she wants, and she tells him, "regular." The attendant fills the tank. At this point, the
contract between the station and Patricia is
Answer:
executory
Question:
5. Wes agrees to install a new hard drive and modem in Mary's computer in exchange for four of her used
textbooks. After he installs the hard drive, Wes says he won't install the modem unless Mary gives him two
more books. What legal position are the parties in now?
Answer:
Mary can sue for breach of contract, because Wes had a preexisting duty to do all of the work
Question:
6. Jackson offers to pay Casey $50 for his used business law textbook. Casey agrees to sell it for that
amount. They agree to meet one week later to exchange the money for the book. Casey and Jackson have
formed
Answer:
a bilateral contract
, Question:
7. Troy, who is 18, offers to sell Jenna, who is also 18, his car for $5,000. Jenna accepts Troy's offer, but
only agrees to pay $4,500 for the car. Which of the following contract elements has not been met?
Answer:
Acceptance
Question:
8. Carmen owns a 2009 Toyota Camry that has been driven 24,000 miles and, to his knowledge, has no
mechanical problems. He offers to sell the car to his friend Jamie for $12,000. Jamie accepts Carmen's
offer. Jamie and Carmen have
Answer:
an express contract
Question:
9. Beaux is discussing with Brad the purpose of the statute of frauds enacted in all states, and tells him the
purpose of the law is to
Answer:
prevent enforcement of certain contracts that are not in writing
Question:
10. Elliot enters into a contract to purchase JD's house, and then changes her mind. JD sues her for breach
of contract. The lawsuit for a breach of contract will be governed by
Answer:
common law of contracts
Question:
11. Kelly tells Matthew that she will sell him one of her motorcycles at some time in the future. Matthew
eagerly accepts. Do they have a valid contract?
Answer:
Probably not, because the terms are not definite
Question:
12. KJ Games, in Colorado, designs computer games that it markets and sells to customers via the Internet.
A click-on agreement accompanies every download; no game can be installed on a buyer's computer if the
buyer does not click on the words "I agree" when prompted. The click-on agreement clearly states in
capital letters that all disputes will be settled in Colorado's state courts. Buyers of KJ's games are most
likely
Answer:
required to file any lawsuits in Colorado
Question:
13. Heather is sixteen but looks much older. She goes into a jewelry store and buys a diamond bracelet
with the money she has been saving for college. If Heather realizes a year later that it was unwise to spend
the money on the bracelet, she
Answer:
can return the bracelet and get her money back
CORRECT ANSWERS
Question:
1. Paul goes to a bar, has seven shots of whiskey, and then goes to an electronics store and buys a $2,500
stereo system. If he later wants to avoid the contract based on his intoxication when he bought it, he will
need to prove that
Answer:
he lacked the mental capacity to enter into the contract
Question:
2. Carol's car was hit while it was parked. Carol calls A-1 Towing, tells the dispatcher the car needs to be
towed, and gives her location. Carol never mentions a price and leaves before the tow truck arrives, so she
does not talk with the driver or sign any documents. Carol
Answer:
owes the company for towing her car under an implied contract
Question:
3. Keisha contracts with a broker to invest all of her savings. The year goes badly, and she loses almost all
the money. She is too ill to return to work and will be penniless if she cannot avoid the contract. Which of
the following applies?
Answer:
She has no legal recourse
Question:
4. Patricia drives to her favorite gas station and tells the attendant to fill her tank. The attendant asks
Patricia what grade she wants, and she tells him, "regular." The attendant fills the tank. At this point, the
contract between the station and Patricia is
Answer:
executory
Question:
5. Wes agrees to install a new hard drive and modem in Mary's computer in exchange for four of her used
textbooks. After he installs the hard drive, Wes says he won't install the modem unless Mary gives him two
more books. What legal position are the parties in now?
Answer:
Mary can sue for breach of contract, because Wes had a preexisting duty to do all of the work
Question:
6. Jackson offers to pay Casey $50 for his used business law textbook. Casey agrees to sell it for that
amount. They agree to meet one week later to exchange the money for the book. Casey and Jackson have
formed
Answer:
a bilateral contract
, Question:
7. Troy, who is 18, offers to sell Jenna, who is also 18, his car for $5,000. Jenna accepts Troy's offer, but
only agrees to pay $4,500 for the car. Which of the following contract elements has not been met?
Answer:
Acceptance
Question:
8. Carmen owns a 2009 Toyota Camry that has been driven 24,000 miles and, to his knowledge, has no
mechanical problems. He offers to sell the car to his friend Jamie for $12,000. Jamie accepts Carmen's
offer. Jamie and Carmen have
Answer:
an express contract
Question:
9. Beaux is discussing with Brad the purpose of the statute of frauds enacted in all states, and tells him the
purpose of the law is to
Answer:
prevent enforcement of certain contracts that are not in writing
Question:
10. Elliot enters into a contract to purchase JD's house, and then changes her mind. JD sues her for breach
of contract. The lawsuit for a breach of contract will be governed by
Answer:
common law of contracts
Question:
11. Kelly tells Matthew that she will sell him one of her motorcycles at some time in the future. Matthew
eagerly accepts. Do they have a valid contract?
Answer:
Probably not, because the terms are not definite
Question:
12. KJ Games, in Colorado, designs computer games that it markets and sells to customers via the Internet.
A click-on agreement accompanies every download; no game can be installed on a buyer's computer if the
buyer does not click on the words "I agree" when prompted. The click-on agreement clearly states in
capital letters that all disputes will be settled in Colorado's state courts. Buyers of KJ's games are most
likely
Answer:
required to file any lawsuits in Colorado
Question:
13. Heather is sixteen but looks much older. She goes into a jewelry store and buys a diamond bracelet
with the money she has been saving for college. If Heather realizes a year later that it was unwise to spend
the money on the bracelet, she
Answer:
can return the bracelet and get her money back
