BUS 263 Final Exam | Answered with complete solutions

BUS 263 Final Exam | Answered with complete solutions Intoxicated, Efron enters a contract for the sale of his business, Freight Dispatch, to Gretel for less than its market value. This contract is enforceable if, at the time, Efron understood the legal consequences Accepting and giving legal force to an obligation that previously was not enforceable is Ratification Chuck, a minor, signs a contract with Denise, an adult. The contract is voidable at the option of Chuck only Steve relinquishes the right to his son Tanner's control, care, custody, and earnings. This act is Emancipation Caitlyn is a minor. As a minor, Caitlyn a. has the capacity to enter into a valid contract b. all of the choices c. is not usually legally bound by a contract d. had the right to avoid liability under a valid contract Val, a minor, enters into a contract to buy a kayak and paddle from a Watercraft dealership. Later, after taking possession, Val disaffirms the deal. She must return both the kayak and the paddle The purpose if the right to disaffirm a contract is to protect minors Flake, a minor, enters into contract to buy an electric guitar. Flake does not take possession or make payments. With respect to the contract, most courts would that this is Disaffirmance Gretchen is adjudged by a court to be mentally incompetent. Gretchen cannot form a legally binding contract with another party Van, a minor, wants to return a set of skis that he brought from Winter Sports. He used and wrecked the skis. In a state in which a duty of restitution is imposed, Van most likely must return the skis and pay for the damage Opal is a minor. In at least some states, Opal can enter into a legally binding contract when she a. reaches the age of majority b. gets married c. is emancipated from her parents d. all of the choices Tracy is fifteen. In most states, for contractual purposes, Tracy would be considered a minor until she is Eighteen Kristin, a minor, enters into a contract to buy a mower from Lawn Gear, a local store. The deal is set aside. Returning Kristin and Lawn Gear to their positions prior to the contract is known as Restitution Sam is mentally incompetent buy had not been adjudged by a court to be incompetent. Sam enters into a contract with Tony for the cleaning and maintenance of the Uptown Offices building. Most likely, the contract is Void Blanche, a minor, enters into a contract to buy two all-season passes from Chalet Mountain Resort. The contract will be made enforceable if Blanche ratifies it Intoxicated, Hank enters a contract for the sale of ten acres of timberland to Ira for less than its market value. Later, Hank seeks to cancel the deal. In determining whether Hank can avoid his duties under the contract, a court is most likely to look at Hank's intoxicated mental state and other factors Jean, a minor, enters a contract with Kino to plant and harvest thirty acres of Jean's mother's farm for a certain price. On reaching the age of majority, Jean does not state that she intends to be bound by the contract, but indicates an intent to implied ratification Whatever is reasonably needed to maintain a minor's standard of living, such as food, clothing, shelter, and medical services, is known as Necessaries Ralph, a minor, enters a contract with Seth for the installation, maintenance, and repair of an HVAC system in Ralph's Uncle Ted's warehouse. On reaching the age of majority, Ralph sends e-mail to Seth, stating that Ralph intends the contract to be binding. This is express ratification Martin, a minor, inherits the rights to several patents. To make use of this property, Martin petitions a court to be treated as an adult for business purposes. If the court grants the request, Martin loses the right to disaffirm business contracts Orin signs a covenant not to compete with his employer, Product Distribution, Inc. The covenant will be enforced if it is reasonable with respect to geographic area and duration. A covenant not to compete is a promise to refrain from competing in business with another A contract to do something that is prohibited by federal or state statute is Unenforceable Doug agrees with Elin to sell prescription drugs illegally to Elin's friends for 25 percent of the take. Doug sells the drugs but keeps all of the money. Elin can not enforce the deal Lionel obtains a loan from Mortgage Company at an interest rate that exceeds the state's maximum. The lender has committed usury Bay Mall requires its tenants to sign a lease that includes a clause releasing the landlord from liability in the event of injury to any person or property no matter who is at fault. This is an exculpatory clause. Jim is an emergency medical technician (EMT). EMTs are prohibited by statute from working more than a certain number of consecutive hours. One month, Jim works more than the legal limit. He can get paid for the hours up to the statutory maximum and the extra hours In determining procedural unconscionability, a court is most likely to consider whether the buyer had an opportunity to ask questions about the contract Countrywide Trucking Inc. contracts with Dewey to transport crated goods to a certain destination for $5,000. Countrywide delivers the crates, but Dewey does not pay. Countrywide learns that the crates contained stolen goods. Countrywide can recover from Dewey $5,000 but not the goods For a contract to be valid and enforceable, it must be formed for a legal purpose Gold Mines Inc. sells stock in a nonexistent gold mine to Harry in violation of a blue-sky law. Harry can sue the seller to recover the purchase price of stock Rosa signs a covenant not to compete with her employer, Sales Corporation. A court decides that the covenant is unreasonably restrictive. Most likely, the court will reform it to prevent any undue burden Generally, licenses of certain professions a. protect the public against actions that threaten the general welfare. of the choices. c. provide a means of taxing certain businesses. d. provide a means of regulating certain businesses. Fagin and Gretel agree to hijack a truck carrying a load of almonds. If Fagin later refuses to go through with the crime, Gretel can a. enforce the agreement. b. obtain damages in the amount of her partner's share of the illegal profits. c. none of the choices. d. obtain damages in the amount of her own share of the illegal profits. A contract to commit a crime is Unenforceable Nate promises to pay for dental services provided by Otto to Polly. Nate receives no personal benefit for the promise. To be enforceable, the promise must be in writing if Nate promises to pay only if Polly does not pay Main St. Markets Inc. and Nature's Food Corporation discuss the terms of a contract. They exchange "signed" e-mails that summarize the terms on which they agree. Main St. begins to perform, but Nature's refuses to pay. Between Main St. and Nature's, the e-mails are a written contract Duane and Evan orally agree to a transfer of forty acres of farmland. Evan asks Finance Bank to lend him the funds to buy the land. Under the Statute of Frauds, the agreement between Duane and Evan is enforceable by a. Duane or Evan b. “Duane, Evan, or Finance Bank c. Finance Bank d. none of the choices Oscar orally agrees with Papa's Pizza Restaurant to provide delivery service to its customers for nine months. This contract is enforceable by either Oscar or Papa's Physicians Clinic orders by phone seven boxes of single-use latex gloves from Quality Medical Supplies, Inc. After three boxes are delivered and accepted, Physicians Clinic repudiates the contract. Quality Medical can enforce the contract to the extent of the three accepted boxes. Merl buys a tablet for $500, running shoes for $200, and a set of the Game of Crowns books for $100. To be enforceable as a contract, a writing is required for the purchase of the tablet only Air Flo, Inc., and Banyan Grove Apartments enter into an oral contract in which Air Flo agrees to provide air-conditioning and heating maintenance for Banyan Grove’s facilities for two years. This contract is enforceable by a. Air Flo b. Banyan Grove c. Any third party, such as a HVAC supplies provider d. none of the choices Fred agrees to assume a debt owed by Guitars Inc. to Home Bank. The agreement is not in writing. To be enforceable under the "main purpose" rule, the promise must be for the benefit of Fred Lewis tells a representative of Music 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 Ray agrees to buy one hundred pounds of almonds from Sol. To be enforceable, the agreement must be in writing if the almonds cost at least $500 Alice and Bart enter into a contract for the sale of Canyon Ranch. To be enforceable, this contract must be in writing or evidenced by a written memorandum Builders Corporation files a suit against Concrete Company to enforce a written contract. If the court finds that the parties intended the contract to be the final statement of their agreement, parol evidence can be admitted to prove an orally agreed-on condition Shipping Corporation enters into contracts with distributors and other buyers in e-commerce and in traditional commerce. The UETA applies, if at all, only to those transactions in which the parties agree to use electronic means Luke puts his motorcycle up for sale via a post on an online auction site. This is an invitation to negotiate, not an offer Kent tries to start his car with no success. He yells that he will sell the car to anyone for $10. Livy, a passerby, hears Kent's yell. This is not an effective offer because it lacks serious intent Under a contract with Red Wines, Sancho begins grading a terraced hillside for the planting of grapes. Halfway through the project, Sancho asks for $5,000 over the contract price, claiming an increase in the "cost of doing business." Red agrees but later refuses to pay. Red's agreement to pay more is unenforceable because Sancho's performance was a preexisting duty Lark promises to buy Mac's used textbook for $60. Lark is a promisor Alice and Bart enter into a contract for the sale of Canyon Ranch. To be enforceable, this contract must be in writing or evidenced by a written memorandum Rory questions whether there is consideration for his contract with Silver Spurs Club to exchange his performance of country music on certain dates for Silver's payment of a certain amount. To constitute consideration, the value of whatever is exchanged must be legally sufficient Cal tells Dana that he will take her out to lunch on Thursday. Cal has made Dana a promise Kelly offers to sell a certain used forklift to Lumber Outlet, but Kelly dies before Lumber accepts. Most likely, Kelly's death terminates the offer Sean promises to pay his personal assistant Terry $50,000 in consideration of the services she provided over the years. Sean never makes the payment. Sean's promise is not enforceable because the consideration is in the past Fabien offers to sell his Graphic Signs LLC business to Hanna for $100,000. Hanna replies, "The price is too high. I will buy it for $75,000." Hanna has rejected the offer and made a counteroffer Alyssa hires Bret to mow Alyssa's lawn every Friday. Although they do not discuss the terms of payment, after each of the first three Friday mows, Alyssa pays Bret on Saturday. The payment term is Implied Ethan is indebted to Finance Credit Corporation for $100,000. Ethan agrees to pay, and Finance Credit agrees to accept, a lesser amount than the creditor originally claimed was owed. This agreement is an accord On Monday, Neil tells Outdoor Landscaping, Inc., that he will pay Outdoor $500 if a variety of tasks are completed by Friday. On Wednesday, when Outdoor is more than half done with the work, Neil says that he has changed his mind. These parties had a unilateral contract as soon as Outdoor began to perform Coffee Beans Inc. offers to buy Brewing Company's roasting services for a certain price. Brewing responds that the price is too low and thereby rejects the offer. The offer is Terminated A valid contract requires an offer and an acceptance Article 2 of the UCC governs contracts for the sale of goods Refined Metals Company and Superior Fabrication, Inc., enter into a contract under which Refined agrees to deliver a certain quantity of sheet metal to Superior each month. The contract does not include a price term. In a suit between the parties over the price, a court will determine a reasonable price Excluded from Article 2 of the UCC is a. minerals that the seller will sever from the land b. corporate stocks and bonds c. crops that are growing on the land d. a car that comes with service warranty e. all of the choices Dian, an agent for Expo Motors, Inc., writes a letter to Flynn on November 1 stating that she will sell him a 2017 Subaru Outback for $25,000 between November 1 and December 31. Dian's letter to Flynn is a merchant's firm offer Bert's Bagels, Inc., and other bakeries refer to a "baker's dozen" as consisting of a collection of thirteen baked goods. This is an example of usage of trade Ferris is refinishing his kitchen floor and needs a floor sander to complete the job. Ferris's neighbor Gina suggests that he call Home Repair Rentals, Inc. Home Repair leases Ferris a floor sander. In this transaction, the lessor is Home Repair Jack sells a grand piano to Kyle for $5,000 and a gold ring to Lauren for $999. A writing is required to enforce the sale of grand piano and gold ring In a dispute over a sale involving a skateboard, Greg argues that as to this deal Hobby Shop, where Greg bought the board, is a merchant. A court may determine whether the shop is a merchant by assessing whether it holds itself out by occupation as having knowledge and skill unique to the skateboard in the transaction Ed sells his car to Fran for $5,000, his bike to Gwen for $600, his game player to Holly for $200, and three shares of stock to Inez for $100. Article 2 of the UCC does not apply to the sale of the patent Lee pays Mobile Electronics $600 for a new phone. Under the UCC, this is a sale Regional Freight LLC delivers a receipt issued by Storage Warehouse for goods stored in its facility to Transnational Inc., a buyer of the goods. This is a warehouse receipt Sure Good Appliance Corporation contracts with Trucking Company to take a selection of appliances to United Railroad, Inc., for United to transport the goods to a VeriSafe Company warehouse. Trucking, United, and VeriSafe each acknowledge possession of the goods by a document of title. These parties are Bailees Paramount Bookstores buys fifty cases of an assortment of books from Quixote Publishing with the right to return the unsold books in lieu of payment. This is a sale or return Big Beef, Inc. raises calves to sell. Big Beef breeds its cows in April, and the cows calve in February of the following year. In January Andrea contracts with Big Beef to buy fifty calves. Identification takes place in April, when the calves are conceived