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Jane offers to sell Kyle three desks for his Lights & Lamps Company administrative office. Kyle sends a rejection first then changes his mind and sends an acceptance. Whether they have a contract is determined by
whether Kyle's rejection or acceptance is received first.
Digital Computers (DC) agrees to sell 100 hard drives to Eagle Computer Stores. Later to obtain a higher profit DC demands an extra $100 per drive to complete delivery. With no other source for DC drives, Eagle reluctantly agrees. Regarding this agreement, a court would likely
Not enforce it
Mary promises to pay her assistant Ned $10,000 in consideration of the services he provided over the years. Mary never pays Ned. Mary is
not liable
General Credit Corporation's promise to pay its employees a year-end bonus "if it seems like a good idea at the time" is
an illusory contract.
Auto Body Repair Shop (ABRS) promises to pay Ben $1000 a week to work for ABRS. Ben accepts and quits his job with Car Care Service. ABRS fails to provide a job for Ben. Ben has a cause of action based on
promissory estoppel.
Timber Inc. and United Corporation enter into an oral contract for a sale of a lumber mill. Under the Statute of Frauds, before United takes possession, this contract is enforceable by
Neither party
Andy and Biz Company (BC) enter into an oral contract under which Andy agrees to clean BC\'s office for two years. This contract is enforceable by
neither party.
Elle buys a new textbook for $100 and a used car for $5000 and signs a one-year lease for an apartment for $1,000 monthly rent to start at the beginning of the next month. The Statute of Frauds covers
the apartment lease and the car purchase only.
Uri and Vicky orally agree on the sale of Uri's Nite Club to Vicky and note terms on a pair of the Club's napkins which they both sign. A written memorandum evidencing an oral contract that would otherwise be unenforceable must contain
the essential terms.
Glen and Haj sign a written contract. Glen claims that the parties later orally agreed to modify the contract. Any oral modification is likely not enforceable if it falls under
the Statute of Frauds.
A third party beneficiary's status occurs:
when the contract is created.
Robert hired James to prepare his tax returns. James was too busy and delegated the work to Sara, also a CPA. This delegation is:
not enforceable, as Robert hired James to perform personal services.
Linda assigns to Ben a right to receive rent payments. The law implies the following warranty on Linda’s part:
Linda actually has a right to the rental payments.
Molly and Craig are the original parties to a contract. Craig is obligated to design a Website for Molly. They subsequently make an agreement with Eric that Eric should take the place of Craig and assume all of Craig's rights and duties under the contract. The agreement releases Craig from his obligations under the contract. This agreement is:
a novation.
Tyron purchased a vacant lot and entered into a contract with BZ Inc. to construct a shopping center on the site. Douglas heard about this contract and built a restaurant on an adjoining piece of property because of the planned shopping center. Tyron was unable to raise the necessary capital and was unable to perform the contract with BZ Inc. Douglas sued Tyron for breach of contract as a third party beneficiary. Douglas will probably:
lose as a third party incidental beneficiary.
Which of the following duties can probably be delegated?
An agreement to paint a house.
Which of the following contract rights is not assignable?
A right to receive personal services.
M & E contracted to sell 500 music stands to Coda Inc. M & E shipped the stands in accordance with the agreement. Coda paid for the stands as promised. The contract between M & E and Coda is discharged by:
full performance.
Both parties changed their minds and agreed to cancel the contract. The contract between the parties is discharged by:
rescission.
Melody is a recent graduate of Law School. She lands an impressive employment contract with a firm on the stated provision that she pass the upcoming bar exam. This provision in the employment agreement is a(n):
condition subsequent.
Jennifer substantially performs her service contract with Gretchen. Due to Jennifer's failure to render complete performance Gretchen:
is required to pay the full contract price
Statutes of limitations:
limit the time in which an injured party may sue.
Ron operates a garbage pickup business. He contracts to pick up garbage from an apartment complex for the next 52 weeks at a price of $50 per week. Unexpectedly the landfill center where Ron takes the garbage to dispose of it files for bankruptcy. As a result, Ron must travel an additional 100 miles to the nearest landfill center, turning Ron's expected profit into a loss of $15 per week. Ron's best argument in support of his petition to be discharged from the contract is:
commercial impracticability.
Which of the following events would probably excuse performance of a contract based on commercial impracticability?
An unforeseeable trade embargo causes prices to triple.
Specific performance may be available for the breach of a contract to sell:
an original painting.
A contract clause which specifies the amount of damages to be paid in the event of a breach is called:
a liquidated damages clause.
Costs to rent a vehicle for a short period of time after an auto dealer fails to deliver a purchased vehicle would be:
incidental damages.
In breach of the partnership agreement, Trimble, a partner in the partnership of Morris, Newt, and Oppie, Ltd. quits the partnership and goes to work for a competitor. The former partners may ask the court for:
an injunction to prevent Trimble from working in competition with the former partners.
Solomon breaches his contract with Neal to purchase the 500 pairs of socks he had promised to buy. Neal is able to sell the 500 pairs to Renny for a much lower amount. Neal then sues Solomon for damages. Neal will be able to recover:
the difference between Solomon's contract price and the amount paid by Renny.
Which of the following statements is incorrect concerning liquidated damages?
Liquidated damages are enforceable even if the amount is considered to be a penalty on the breaching party.
Can a person work as an agent for two different people with conflicting interests?
Yes, provided the agent discloses to both principals that she is representing both persons and the principals agree to the dual relationship.
Which of the following is not required of an agency relationship?
Consideration.
Wanting to save the money she would have to pay for a commission Marsha asks her friend Howard to check on the Internet and see if he can find a five-day cruise to the Bahamas for under $400 and if he does to book it for her. He agrees, but later tells her he doesn’t have time to check for her. Howard:
is not liable to Marsha because he was a gratuitous agent and had both the power and the right to quit any time he wanted.
What rule relative to agency law applies to an agent:

selling real estate for the principal.

hired to contract for a booth at a trade show scheduled to occur in two years.

authorized to enter into a two-year lease for her principal.
The equal dignities rule
Janet was employed as a sales representative for Esday Inc. An appreciative customer gave her a diamond bracelet for all her hard work on a complicated contract. Can Janet keep the bracelet?
Yes, but only if she discloses the gift to Esday and Esday consents to her keeping the bracelet.
Nikki was an tax accountant with HBR Accounting. Nikki decided to do some tax consulting in the evenings and on weekends. HBR is unaware of Nikki's consulting work. Which statement is correct?
Nikki has breached a fiduciary duty to HBR since she is competing with HBR.
Tom, the production manager at Esday, was told by his supervisor to hire Elton, a 15- year-old, to operate an industrial machine. Hiring the 15-year-old violates the child labor laws. Tom:
should not hire Elton. Tom has a duty to obey Esday's instructions only if they are legal and ethical.
The death of the agent:
automatically terminates the agency relationship
Linda borrowed $ $2,500 from Tonya. They agreed that Tonya could take a grouping of Linda's antiques as collateral. If Linda could not pay, then Tonya could sell the antiques to recover her money. When Linda could not pay off the loan, Tonya sold the antiques and paid Linda the proceeds after deducting the balance of the loan. Which of the following statements is correct?
This is a power coupled with an interest.Linda has neither the power nor the right to terminate the relationship. This is an irrevocable agency relationship.
John hired Tim to sell his house. Which statement is correct?
John is Tim's principal.
Jenny is a salesperson in a hardware store. As such she:
has implied authority to conduct sales transactions

is an agent of the store

has express authority to conduct sales transactions.
Thomas, the manager of an apartment complex, rented an apartment to Donna. A few weeks later, Donna complained that the hot water did not work. Thomas hired Hometown Plumbers to fix the hot water, but the job was not successful. A few days later Donna moved out since she had no hot water. She sued the landlord and Thomas for breach of contract.
The landlord is liable, but not Thomas.
Circus Pizza contracted with Art to run its birthday parties. Art's responsibilities included supervising the children and organizing the games. Circus did not investigate Art's background which included a history of assaulting children. Art assaulted a 7-year-old girl in the restaurant's kitchen during a birthday party. Circus Pizza:
may be held liable on the basis of negligent hiring.
Paula appointed Al to be her agent via a contract in writing that spelled out the scope of Al's authority. The contract provided that Al was not to disclose that he was acting on behalf of Paula. In entering into a contract for Paula Al did not disclose to the third party that he was acting as an agent. In this case, the principal was:
undisclosed
When a principal is partially disclosed:
the agent and principal will be jointly and severally liable on the contract.
If an employer and employee are jointly and severally liable, the third party:
can collect the full award from either the employee or employer.
Mike worked for Frank's Pizza as a driver. His duties consisted of making deliveries along a designated route. One day Mike decided to see his girlfriend, who lived 50 miles out of his pizza route. While driving to his girlfriend's, Mike injured a pedestrian, Chuck. The accident was caused because of Mike's negligent operation of the delivery truck. Chuck is now suing both Mike and Frank's for personal injuries. Under the circumstances:
Frank's is probably not liable because Mike's excursion was not within the scope of his employment.
The doctrine of respondeat superior:
applies to employees but not independent contractors.
Chance is a traveling marketing representative for a publishing company. He is an independent contractor. One afternoon while driving to a meeting he negligently runs a stop sign and causes an accident. Judy is injured. Judy can:
hold Chance but not the company liable.
An employer is liable for the intentional misconduct of his employee if that employee was:
motivated at least in part by a desire to serve the employer.
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