GBL 385 - Exam 2 Study Guide Questions
With Correct Answers
Bedrock |Bikes, |Inc., |enters |into |a |contract |with |Bam-Bam. |If |Bam-Bam |is |a |minor, |this |contract |
is |most |likely |- |CORRECT |ANSWER✔✔-voidable |only |by |Bam-Bam
Fred |has |the |largest |pizza |business |in |the |city. |He |learns |that |Barney |is |thinking |of |opening |a |
competing |pizza |and |pasta |delivery |business. |Fred |promises |Barney |$25,000 |to |not |open |his |
proposed |business |in |the |same |city. |They |sign |a |contract |stating |that |Fred |promises |to |pay |
Barney |and |Barney |promises |not |to |open |the |competing |business. |But |6 |months |goes |by, |and |
although |Barney |does |not |open |the |business, |Fred |doesn't |pay |the |$25,000 |in |accordance |
with |the |terms |of |the |contract. |What |is |the |likely |result |if |Barney |were |to |take |Fred |to |Court?
|- |CORRECT |ANSWER✔✔-The |Court |would |hold |the |contract |was |a |restraint |on |trade |and |
leave |the |parties |where |it |found |them.
Jane |offers |to |pay |Kyle |$500 |if |he |jogs |across |the |Golden |Gate |Bridge. |Kyle |can |accept |the |
offer |only |by |jogging |across |the |bridge. |If |Kyle |jogs |across |the |bridge, |he |and |Jane |will |have |
formed |- |CORRECT |ANSWER✔✔-a |unilateral |contract.
Jack |sells |Jim |a |used |car |that |Jack |falsely |described |as |having |been |driven |only |12,000 |miles. |
Fraud |has |occurred |if: |- |CORRECT |ANSWER✔✔-Jim |relied |upon |Jack's |statement.
Wayne |helped |Hank |study |all |night |for |an |important |exam. |After |Hank |got |an |"A" |on |the |
exam, |he |told |Wayne, |I |will |give |you |$10 |for |helping |me |get |a |good |grade. |Wayne |said, |Thanks
|- |CORRECT |ANSWER✔✔-no |contract |because |there |is |no |valid |consideration.
The |Johnsons |decided |to |sell |their |summer |cabin |on |Beech |Lake. |They |sent |flyers |out |to |all |
who |previously |had |expressed |an |interest |in |buying |the |cabin |stating |that |they |were |planning |
on |selling |their |cabin. |The |flyer |described |the |location |of |the |property, |the |size |of |the |lot, |and |
the |price. |If |one |of |the |recipients |responds |by |sending |a |letter |accepting, |an |agreement: |- |
CORRECT |ANSWER✔✔-will |not |be |formed |because |the |flyer |was |sent |out |as |an |invitation |to |
make |an |offer.
With Correct Answers
Bedrock |Bikes, |Inc., |enters |into |a |contract |with |Bam-Bam. |If |Bam-Bam |is |a |minor, |this |contract |
is |most |likely |- |CORRECT |ANSWER✔✔-voidable |only |by |Bam-Bam
Fred |has |the |largest |pizza |business |in |the |city. |He |learns |that |Barney |is |thinking |of |opening |a |
competing |pizza |and |pasta |delivery |business. |Fred |promises |Barney |$25,000 |to |not |open |his |
proposed |business |in |the |same |city. |They |sign |a |contract |stating |that |Fred |promises |to |pay |
Barney |and |Barney |promises |not |to |open |the |competing |business. |But |6 |months |goes |by, |and |
although |Barney |does |not |open |the |business, |Fred |doesn't |pay |the |$25,000 |in |accordance |
with |the |terms |of |the |contract. |What |is |the |likely |result |if |Barney |were |to |take |Fred |to |Court?
|- |CORRECT |ANSWER✔✔-The |Court |would |hold |the |contract |was |a |restraint |on |trade |and |
leave |the |parties |where |it |found |them.
Jane |offers |to |pay |Kyle |$500 |if |he |jogs |across |the |Golden |Gate |Bridge. |Kyle |can |accept |the |
offer |only |by |jogging |across |the |bridge. |If |Kyle |jogs |across |the |bridge, |he |and |Jane |will |have |
formed |- |CORRECT |ANSWER✔✔-a |unilateral |contract.
Jack |sells |Jim |a |used |car |that |Jack |falsely |described |as |having |been |driven |only |12,000 |miles. |
Fraud |has |occurred |if: |- |CORRECT |ANSWER✔✔-Jim |relied |upon |Jack's |statement.
Wayne |helped |Hank |study |all |night |for |an |important |exam. |After |Hank |got |an |"A" |on |the |
exam, |he |told |Wayne, |I |will |give |you |$10 |for |helping |me |get |a |good |grade. |Wayne |said, |Thanks
|- |CORRECT |ANSWER✔✔-no |contract |because |there |is |no |valid |consideration.
The |Johnsons |decided |to |sell |their |summer |cabin |on |Beech |Lake. |They |sent |flyers |out |to |all |
who |previously |had |expressed |an |interest |in |buying |the |cabin |stating |that |they |were |planning |
on |selling |their |cabin. |The |flyer |described |the |location |of |the |property, |the |size |of |the |lot, |and |
the |price. |If |one |of |the |recipients |responds |by |sending |a |letter |accepting, |an |agreement: |- |
CORRECT |ANSWER✔✔-will |not |be |formed |because |the |flyer |was |sent |out |as |an |invitation |to |
make |an |offer.
