LSB 3213 Exam 2 All Possible Questions and Answers with complete solution

John tells Jami he would sell her his grandmother's wedding ring for $100.00. Jami accepts and they exchange the ring and the money. Two days later, John tells Jami that he was only joking and now wants the ring back and he will give her the money back. According to the objective theory of contracts, which statement below is correct? - Even if John was joking, the court will not consider John's personal belief but will determine if a reasonable person would believe John's language and conduct indicated he was serious in his intent to contract. Ben and Ivy enter into a contract under which Ben agrees to cater Ivy's wedding in exchange for a cash down payment. The contract expressly prohibits any transfer of rights. A contract right may be transferred, however, if the transfer involves - a right to receive payment. "Honesty in fact and the observance of reasonable commercial standards of fair dealing" is the definition of good faith according to - The Uniform Commercial Code and common law A major-league baseball team based on the North side of Chicago is in the playoffs and doing well. Behind the left-field wall there is an apartment building, and the owner advertises, "Space available on the apartment building roof with a clear view of the field for the World Series. Bring a lawn chair, your radio, and a cooler and enjoy the game. Just $50 per game." Bart, a lifelong fan, answers the ad and pays the building owner $100 to reserve space for the first two games. Unfortunately, the team fails to advance to the World Series. - Bart will get a refund because of frustration of purpose. A meeting of the mind requires - a true understanding, and acceptance, of the terms of the offer. A promise made in return for a detriment previously made by the promisee is a - Past consideration A valid contract requires - an offer and an acceptance ABC Land Co. is negotiating the sale of an office building to Mega Co. Which laws will govern the contract for the sale of the building? - State common law.An agreement between two adults to pay $300 cash for a bicycle is an example of a contract that is - Valid An agreement to buy cocaine from a drug dealer is - a void contract. Caleb contracts with Eliza to beat up Mickey for $50.00. Is that agreement enforceable? - No it is illegal. Clyde contracts with Seaside Resorts to rent an oceanfront room for a romantic weekend with his girlfriend Anne. In fact, Clyde intends to propose to Anne on the beach under the full moon during their stay. He made this decision after booking the room. The contract with Seaside Resorts requires a $250 deposit with the remaining $250 due upon check-in. The deposit is nonrefundable unless the reservation is canceled at least 48 hours prior to check-in. The day before they are to leave for the resort, Clyde and Anne have a huge fight and break up. If Clyde calls Seaside, cancels the reservation, and demands a refund of his deposit, is Seaside legally obligated to refund Clyde's money? - No. Seaside is not legally obligated to provide a refund. Dim threatens physical harm to force Ed to sell his business, Flowers, Inc., to Dim for a below-market price. This is - Duress Don enters into a contract with Eve, who claims to have access to a stock-trading algorithm that will multiply an investment many times over. When the results do not match this promise, Don learns that Eve does not have access to any unique software and files a suit, alleging fraud. Proof of an injury is required to - recover damages. Field Construction, Inc., contracts with Mesa Ranch to build a new horse barn on Mesa's property for which Mesa agrees to pay. The elements of this, and any other, contract include - Legality Flora enters into a contract with Global Shipping, Ltd., to insure and ship a painting from France to the United States for a certain price. Global makes a mistake in adding the costs, which results in a contract price that is $1,000 less than the true cost. Most likely, a court would - allow the parties to rescind the contract.Floyd signs a contract to buy a drum kit just before reaching the age of majority. After reaching the age of majority, Floyd does not take possession or make payments. With respect to the contract, most courts would hold that this is - disaffirmance. For a contract to be enforceable it must not violate some __________. - Public policy Fraud requires - Actual knowledge of a lie Fraud requires - Scienter Gabrielle, a 19 year old college freshman, promises not to drink any alcohol while she is away at college in exchange for her parents' promise to pay for her tuition. Is there consideration? - No because Gabrielle is not giving up something of legal value as she is under 21 years. Herb offers to sell Ron a cow that both parties believe is newly pregnant. A few months later they both realize that the cow is not pregnant. Can either party avoid the contract? - Yes because it was a mutual mistake. Idina admires Jules's collection of guitars. July says, "I plan to sell the collection when I get tired of it." Jules's statement is - not an offer because July expressed only an intent to enter into a future contract. If a person unintentionally engages in innocent misrepresentation, the other party may - Avoid the contract Illegal contracts are - void In an exchange of e-mails, Rob, a landlord, and Sam agree to a lease of a certain apartment for one year. Under the Statute of Frauds, this lease is enforceable provided - the e-mail is signed by the party against whom enforcement is sought.In general, contracts for the sale of goods are governed by: - state statutory law based on the Uniform Commercial Code. Intoxicated but capable of comprehending the consequences of her actions, Cricket signs a contract to sell her phone app design to Download, Ltd. This contract is - enforceable. Jess, a nurse practitioner, renders aid to Kurt, who is injured and unconscious. Jess can recover the cost of the aid from Kurt - as if the parties had entered into an actual contract. Josh sells t-shirts at an amusement park. When selling t-shirts, he often tells people that the shirts are the softest shirts ever created. If he did not truly believe that and it was a lie, would this be an example of misrepresentation? - No because it is a lie about an opinion. Kiiko offers to sell her dog to Taiga for $250.00. Taiga immediately yells, "heck no!" Later Taiga changes his mind and calls Kiiko up to tell her that he accepts her offer. Which statement below is correct? - Taiga rejected the offer, and a rejection terminates an offer. Les orders a set of vitamins online. When it arrives the vitamins were packaged in shrink wrap. When he opens the packaging, he is accepting what type of agreement? - Shrink Wrap Lewis tells a representative of Musical Instruments, 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 - only if it is in writing. Maya tries to start her new car with no success. She yells that she will sell the car to anyone for $10. Nero, a passerby who owns Nero's Motors, hands Maya $10. This is - not a valid acceptance because Maya does not seriously intend to sell. Moe asserts that a deal he entered into with Nina to sponsor and host a motivational conference for independent sales representatives is an unenforceable contract. Defenses to the enforcement of a contract include - the lack of a party's voluntary consent.