BUL3310 EXAM 3 QUESTIONS
WITH ANSWERS REV ISED AND
UPDATED!
The minor must pay the contract price of the goods or services. - Answer-Which of the
following statements about a minor's purchase of necessaries is false?
false - Answer-Any person who occupies a position of trust and confidence in relation to
another person or his property is a trustee.
Furniture World, because it is a merchant and Bill had not yet taken possession of the
table. - Answer-On Saturday, Bill Buyer paid Furniture World, a furniture retailer, 600 for
a table. It was to be buffed and crated so that Bill could transport it home in his truck on
Tuesday. On Monday the table was destroyed in a fire at Furniture World. Who bears
the risk of loss?
lease of goods - Answer-Article 2A of the Code governs
F.O.B.Lodestar, Boston - Answer-Trader, a business located in Rutland, Vermont, is
shipping goods from the Port of Boston to a customer in Oslo, Norway. The contract
calls for Trader to deliver the goods and have them safely loaded on the ship, Lodestar.
Trader's liability ends when the goods are on the ship. The contract will read
void - Answer-Six months after being adjudicated insane, Connie signed a contract for
premium cable service. The legal status of this contract is
false - Answer-An automobile mechanic who has possession of a car while repairing it
is the bailor of the car.
true - Answer-Crops are identified to the contract when they are planted.
Warehouse receipt - Answer-The document issued by a storage facility acknowledging
that goods have been accepted for storage is a .
Yes, because the sale of goods predominates - Answer-Sandy bought a large air
conditioner from Big Box Home Store for $525. For an additional $100, the store
delivered, installed and programmed the unit. Does this sale come under Article 2 of the
Code?
true - Answer-A merchant's duty of "good faith" under the Code includes observing the
reasonable commercial standards for fair dealing in his or her trade.
disaffirm the contract - Answer-Once a contract has been ratified, the ratifying party
loses the right to .
,true - Answer-One of the elements of fraudulent misrepresentation is that the victim's
reliance on the false representation was justifiable.
false - Answer-A seller who fills a motor with heavy grease to keep it from knocking is
engaged in mere "sales dressing" and is not liable for fraudulent misrepresentation.
false - Answer-If the contract is silent about delivery terms, a destination contract is
assumed.
false - Answer-Scienter includes not only actual knowledge that a statement is false, but
also reckless disregard for whether the statement is true or false.
Bailee - Answer-The party who takes possession of property belonging to another with
the understanding that the property must be returned to the owner or delivered to a
designated third party is an .
exemplary - Answer-What is another term for punitive damages?
bilateral - Answer-Bob promised to pave Sue's driveway and Sue promised to pay him
$5000 when the work was completed. The contract between Bob and Sue is a
contract.
mitigate - Answer-Plaintiff's duty to take steps to lessen the damages that result from a
defendant's breach of contract is the duty to .
true - Answer-Another term for punitive damages is exemplary damages.
false - Answer-The purpose of compensatory damages is to punish the breaching party.
liquidated - Answer-Typically in construction contracts there will be a provision awarding
damages to the buyer at "X" amount of dollars per day for each day the builder is late in
completing the work. The parties to the contract agree upon this amount in advance
because they know the buyer will incur added costs, or will lose profits, because of the
delay. What type of damages are these contractually fixed payments?
true - Answer-Grace has a valid contract with Al to buy a desk once owned by James
Madison. Al now refuses to go through with the sale. Because the item is unique, Grace
can seek a decree of specific performance to enforce the contract.
true - Answer-A contract entered into by a minor is voidable at the option of the minor.
true - Answer-For promissory estoppel to be granted as a remedy, the promisor must
have known or expected that the promisee would rely on the promise.
false - Answer-Courts do not enforce output contracts as a matter of public policy.
a. Jim sells crabs to another buyer.
b. Jim buys crabs from other crabbers at 25 per bushel so that he can sell them to Bay
Crab at the contract price of 35 per bushel.
c. Bay Crab buys crabs from another crabber.
D. A AND B ARE BOTH BREACHES (CORRECT) - Answer-Bay Crab Processor has a
, contract with Jim, a local crabber, to buy all the crabs Jim catches during the season for
35 per bushel. Which of the following actions would constitute a breach of the contract
between Bay Crab and Jim?
WITH ANSWERS REV ISED AND
UPDATED!
The minor must pay the contract price of the goods or services. - Answer-Which of the
following statements about a minor's purchase of necessaries is false?
false - Answer-Any person who occupies a position of trust and confidence in relation to
another person or his property is a trustee.
Furniture World, because it is a merchant and Bill had not yet taken possession of the
table. - Answer-On Saturday, Bill Buyer paid Furniture World, a furniture retailer, 600 for
a table. It was to be buffed and crated so that Bill could transport it home in his truck on
Tuesday. On Monday the table was destroyed in a fire at Furniture World. Who bears
the risk of loss?
lease of goods - Answer-Article 2A of the Code governs
F.O.B.Lodestar, Boston - Answer-Trader, a business located in Rutland, Vermont, is
shipping goods from the Port of Boston to a customer in Oslo, Norway. The contract
calls for Trader to deliver the goods and have them safely loaded on the ship, Lodestar.
Trader's liability ends when the goods are on the ship. The contract will read
void - Answer-Six months after being adjudicated insane, Connie signed a contract for
premium cable service. The legal status of this contract is
false - Answer-An automobile mechanic who has possession of a car while repairing it
is the bailor of the car.
true - Answer-Crops are identified to the contract when they are planted.
Warehouse receipt - Answer-The document issued by a storage facility acknowledging
that goods have been accepted for storage is a .
Yes, because the sale of goods predominates - Answer-Sandy bought a large air
conditioner from Big Box Home Store for $525. For an additional $100, the store
delivered, installed and programmed the unit. Does this sale come under Article 2 of the
Code?
true - Answer-A merchant's duty of "good faith" under the Code includes observing the
reasonable commercial standards for fair dealing in his or her trade.
disaffirm the contract - Answer-Once a contract has been ratified, the ratifying party
loses the right to .
,true - Answer-One of the elements of fraudulent misrepresentation is that the victim's
reliance on the false representation was justifiable.
false - Answer-A seller who fills a motor with heavy grease to keep it from knocking is
engaged in mere "sales dressing" and is not liable for fraudulent misrepresentation.
false - Answer-If the contract is silent about delivery terms, a destination contract is
assumed.
false - Answer-Scienter includes not only actual knowledge that a statement is false, but
also reckless disregard for whether the statement is true or false.
Bailee - Answer-The party who takes possession of property belonging to another with
the understanding that the property must be returned to the owner or delivered to a
designated third party is an .
exemplary - Answer-What is another term for punitive damages?
bilateral - Answer-Bob promised to pave Sue's driveway and Sue promised to pay him
$5000 when the work was completed. The contract between Bob and Sue is a
contract.
mitigate - Answer-Plaintiff's duty to take steps to lessen the damages that result from a
defendant's breach of contract is the duty to .
true - Answer-Another term for punitive damages is exemplary damages.
false - Answer-The purpose of compensatory damages is to punish the breaching party.
liquidated - Answer-Typically in construction contracts there will be a provision awarding
damages to the buyer at "X" amount of dollars per day for each day the builder is late in
completing the work. The parties to the contract agree upon this amount in advance
because they know the buyer will incur added costs, or will lose profits, because of the
delay. What type of damages are these contractually fixed payments?
true - Answer-Grace has a valid contract with Al to buy a desk once owned by James
Madison. Al now refuses to go through with the sale. Because the item is unique, Grace
can seek a decree of specific performance to enforce the contract.
true - Answer-A contract entered into by a minor is voidable at the option of the minor.
true - Answer-For promissory estoppel to be granted as a remedy, the promisor must
have known or expected that the promisee would rely on the promise.
false - Answer-Courts do not enforce output contracts as a matter of public policy.
a. Jim sells crabs to another buyer.
b. Jim buys crabs from other crabbers at 25 per bushel so that he can sell them to Bay
Crab at the contract price of 35 per bushel.
c. Bay Crab buys crabs from another crabber.
D. A AND B ARE BOTH BREACHES (CORRECT) - Answer-Bay Crab Processor has a
, contract with Jim, a local crabber, to buy all the crabs Jim catches during the season for
35 per bushel. Which of the following actions would constitute a breach of the contract
between Bay Crab and Jim?
