AIC 301 - Test Prep Questions
Allison sued George for breach of contract and the term "contractual consideration" was at
issue. In court, the term would be given its
Select one:
A. Legal meaning.
B. Technical meaning.
C. Dictionary definition.
D. Common usage meaning. - ANS-A. Legal meaning.
Andrew promised Katy he would roof her house on October 30. On October 15, Andrew told
Katy he could not find the correct shingles and stated he was probably going to be too busy to
do the job. Andrew has
Select one:
A. Not repudiated the contract.
B. Rescinded the contract.
C. Breached the contract.
D. Voided the contract. - ANS-A. Not repudiated the contract.
Betty sold her small bookstore to Kate and orally formed a three year not-to-compete
agreement. Two years after the sale, Betty opened a coffee shop with a small bookstore across
town from Kate. Kate sued Betty because of the not-to-compete agreement. Their agreement
would
Select one:
A. Be enforceable because Betty is competing with Kate prior to the end of the three year
not-to-compete contract.
B. Not be enforceable because the period exceeds one year.
C. Be enforceable because Betty's new business includes a book shop which is prohibited
under the not-to compete agreement.
D. Not be enforceable because the coffee shop substantially changed the business and the
not-to-compete agreement would not apply. - ANS-B. Not be enforceable because the period
exceeds one year.
Elida organized a canoe race and contracted with Xavier to supply the canoes the morning of
the race. When Xavier failed to deliver the canoes when promised, Elida was required to refund
entry fees to the ten participants in the race. This loss of the entry fee money is an example of
which one of the following types of damages?
Select one:
A. General damages
B. Consequential damages
C. Compensatory damages
D. Punitive damages - ANS-B. Consequential damages
Even though an assignor has not yet advised an obligor of an assignment, a valid assignment is
effective
Allison sued George for breach of contract and the term "contractual consideration" was at
issue. In court, the term would be given its
Select one:
A. Legal meaning.
B. Technical meaning.
C. Dictionary definition.
D. Common usage meaning. - ANS-A. Legal meaning.
Andrew promised Katy he would roof her house on October 30. On October 15, Andrew told
Katy he could not find the correct shingles and stated he was probably going to be too busy to
do the job. Andrew has
Select one:
A. Not repudiated the contract.
B. Rescinded the contract.
C. Breached the contract.
D. Voided the contract. - ANS-A. Not repudiated the contract.
Betty sold her small bookstore to Kate and orally formed a three year not-to-compete
agreement. Two years after the sale, Betty opened a coffee shop with a small bookstore across
town from Kate. Kate sued Betty because of the not-to-compete agreement. Their agreement
would
Select one:
A. Be enforceable because Betty is competing with Kate prior to the end of the three year
not-to-compete contract.
B. Not be enforceable because the period exceeds one year.
C. Be enforceable because Betty's new business includes a book shop which is prohibited
under the not-to compete agreement.
D. Not be enforceable because the coffee shop substantially changed the business and the
not-to-compete agreement would not apply. - ANS-B. Not be enforceable because the period
exceeds one year.
Elida organized a canoe race and contracted with Xavier to supply the canoes the morning of
the race. When Xavier failed to deliver the canoes when promised, Elida was required to refund
entry fees to the ten participants in the race. This loss of the entry fee money is an example of
which one of the following types of damages?
Select one:
A. General damages
B. Consequential damages
C. Compensatory damages
D. Punitive damages - ANS-B. Consequential damages
Even though an assignor has not yet advised an obligor of an assignment, a valid assignment is
effective
