Question 1Which of the following is FALSE regarding rights of an assignee and assignor?Assignees essentially fill in for the assignor as the legal recipient of contractual duties.Assignees acquire the same rights as the assignor had.Assignees are offered additional protection than assignors.The obligor may raise any of the same defenses for nonperformance to the assignee that he or she would have been able to raise against the assignor.When an assignor transfers rights to an assignee, the assignor legally gives up all rights he or she previously had to collect on the contract.4 points Question 2Courtney, who does not keep up with the price of current technology, agrees to buy a used computer from Jake for $2,500. Later, Brice tells Courtney that she made a really bad deal and that she could get an even better new computer for no more than $1,000. Courtney tells Jake that she is not giving him any money because he was not fair with her. Which of the following is the most likely result if Jake sues Courtney alleging breach of contract?Jake will win only if he can establish that Brice is wrong and that the deal was actually reasonable.Jake will win because the court would not weigh whether a good bargain was made.Courtney will win if she can establish that she paid at least 75% more than the computer was actually worth.Courtney will win if she can establish that she paid at least 50% more than the computer was actually worth.Courtney will win if she can establish that she made a bad deal and that truly she was not aware of current prices of computers.4 points Question 3Which of the following would NOT be viewed as an example of consideration?A promise to stay in a job until a particular project is completedA promise to your football coach to refrain from riding your motorcycle during football season even though you love riding itA promise to cook dinner for your roommate for the next six monthsA promise to stop drinking alcohol during exam weekA promise to pay your employees as required by law4 points Question 4Marcy’s mother, Sue, did not want her to date until she was older. She also wanted Marcy to attend law school. Just before Marcy started her freshman year in college, Sue told Marcy that if Marcy would refrain from dating until she received her law degree, then Sue would pay off all of Marcy’s school loans and throw in an extra $50,000. Marcy agreed and stated, “Thanks, Mom; when I graduate, I’m throwing you a big party for all you have done for me!” Sue smiles and hugs Marcy. Marcy finished law school and asked for payment of her loans, the $50,000 in cash, and for a car. Sue said, “No wayâ€”I know you went out on some dates during law school, and I never agreed on the car.” Marcy said those were just study nights and that her mother had never objected to Marcy’s frequent statements that she wanted a car upon graduation. Sue asks about the party. Marcy tells her that she is nuts because there is no way Marcy can afford a party since Sue has backed out of the deal. After some serious negotiation, Marcy and Sue settled their dispute with Sue agreeing to pay for half of Marcy’s school loans and for all of the expenses of Marcy’s upcoming wedding; Sue also agreed to forget about Marcy throwing a party for her. Was there sufficient consideration to support Marcy’s agreement to throw a party for Sue?Yes, sufficient consideration was present.No, there was insufficient consideration because Sue did not promise anything in exchange.No, there was insufficient consideration because Marcy’s agreement was illusory.No, because throwing a party is not of a monetary value such as to constitute consideration.No, because close relatives are involved.4 points Question 5Which of the following is TRUE regarding illusory promises?Illusory promises are not consideration.Illusory promises are consideration.Illusory promises qualify as consideration when past consideration is at issue.Illusory promises qualify as consideration when promissory estoppel is at issue.Illusory promises are consideration only when a sale of goods is involved.4 points Question 6A __________ is a FALSE representation of a material fact that is consciously false and intended to mislead the other party.negligent misrepresentationfraudulent misrepresentationscienter misrepresentationnegligent misrepresentation, fraudulent misrepresentation, and scienter misrepresentationnegligent or fraudulent misrepresentation, but not a scienter misrepresentation4 points Question 7In Hamer v. Sidway, the New York Court of Appeals found that forbearance:negates the enforceability of a contract.is not mandatory for a contract to be binding.is unconstitutional.is sufficient consideration for a valid contract.is insufficient consideration for a valid contract.4 points Question 8Which of the following occurs when a party to a contract transfers his or her rights to a contract to a third party?assignmentreferraldisgorgementprivitytransfer4 points Question 9Which of the following is an example of consideration?A benefit to the promisor but not a detriment to the promiseeA detriment to the promisee but not a benefit to the promisorA promise to do something, a benefit to the promisor, or a detriment to the promiseeAn accepted offerA valid counteroffer4 points Question 10What are the elements of a binding contract?Offer, acceptance, consideration, and assentAcceptance, consideration, assent, and legal objectAgreement, offer, acceptance, and considerationAgreement, consideration, contractual capacity, and assentAgreement, consideration, contractual capacity, and legal object4 points Question 11For $300,000, Willis agrees to build a new home for Robert, who is very picky. Willis builds the home to Robert’s specifications with one exception. The faucets and linoleum flooring in a powder room are not exactly what Robert specified. That was a mistake on Willis’ part, but he had not intentionally failed to follow specifications. When Robert sees the powder room, he goes ballistic and tells Willis that he will not pay Willis anything for the house. It will take $300 to put in correct faucets and linoleum. Willis says that he is willing to pay $300 to put Robert in the position he would have been in had the correct faucets and linoleum been used, but that is all he is willing to pay. Which of the following is true regarding whether Willis breached the contract?Willis did not breach the contract.Willis materially breached the contract.Willis substantially breached the contract.Willis breached the contract, but the breach was not material.Willis committed an anticipatory breach of the contract.4 points Question 12Harry accepts Frank’s offer to sell a used car for $2,000. At what point is there a binding contract?When the agreement is madeWhen the money is paidWhen the car is delivered10 days after the car is delivered and approved20 days after the car is delivered and approved4 points Question 13Which of the following are the two most important primary sources of contract law?Case law and the restatement of lawCase law and the Uniform Commercial CodeThe Uniform Commercial Code and the Convention on Contracts for International Sales of GoodsCase law and the Convention on Contracts for International Sales of GoodsThe Convention on Contracts for International Sales of Goods and the Restatement of the Law Second, Contracts4 points Question 14Bill contracts with Judy to wash her car and then delegates the duty to Paul. Paul fails to wash the car. Which of the following is true regarding Bill’s duty to Judy, if any?Bill has no duty to Judy so long as she did not expressly object to the delegation.Bill has no duty to Judy regardless of whether she objected to the delegation.Bill continues to be bound to Judy to see that her car gets washed.Bill continues to be bound to Judy to see that her car gets washed only if the contract expressly prohibited delegation.Bill continues to be bound to Judy to see that her car gets washed unless he already paid Paul for the job.4 points Question 15George offers to sell Penelope a ring that George found in his yard. He and Penelope look at the ring and decide that they are not sure what it is. Penelope pays George $10 for the ring. The ring turns out to be a diamond worth much more than $10. George wants the ring back, and Penelope refuses. What is the most likely result?The ring will be returned to George because of mutual mistake.The ring will be returned to George because of unilateral mistake.The ring will be returned to George because of equity.The ring will remain with Penelope unless George can establish that she was negligent in not recognizing the ring’s true value.The ring will remain with Penelope because the parties contracted on the assumption that they did not know the value of the ring.4 points Question 16Which of the following occurs when a party unjustifiably fails to substantially perform his or her obligations under the contract?Material breachSubstantial breachImmaterial breachDelineated breachCrossed breach4 points Question 17Business law teacher, Debby, needed some yard work done. She told her class that she would give $50 to the first person who mowed her yard. Max went to mow Debby’s yard. Unfortunately, just as he finished mowing, a neighborhood dog bit him, and he had to go to the emergency room for a couple of stitches. Debby refused to pay Max on the basis that the agreement was not in writing and that Max ended up being more trouble than he was worth. Max refused to pay the emergency room because he said that he did not have a binding, bilateral contract with Debby. Which of the following is an appropriate characterization of the agreement between Debby and Max?They had a bilateral, express contract.They had a bilateral, implied contract.They had a bilateral and unilateral contract.They had a unilateral contract.They did not have any type of enforceable agreement.4 points Question 18Which of the following are the two primary kinds of performance?Partial and significantPartial and completePartial and substantialComplete and substantialComplete and significant4 points Question 19When a party’s obligations under a contract are terminated, the party is said to be __________.finishedterminatedcompleteddischargedrecoursed4 points Question 20Distinguishing between unilateral and mutual mistakes is important because the classification bears on which contracts __________.are voidare voidablelack considerationlack legalitynone of these because mutual mistakes are not recognized in the area of contracts4 points Question 21In a __________ contract, the offeror wants a performance to form the contract.trilateralbilateralunilateralcompleteanticipatory4 points Question 22If the plaintiff is seeking legal damages which would put him or her in the same position he or she would have been in had the contract been fully performed, he or she is suing for __________ damages.equitablecompensatorydeservedlearnedpunitive4 points Question 23Which of the following is necessary to establish that a mutual mistake was made involving a basic assumption about the subject matter of a contract?That the mistake involved the existence, quality, or quantity of the items to be exchangedThat the mistake involved whether a party could profit from the contractThat the mistake involved whether a party could profit from the contract or whether a party misunderstood the time constraints involved in regard to the contractThat the mistake involved the identity of parties to the contract or whether a party misunderstood the time constraints involved in regard to the contractThat the mistake involved a misunderstanding of law as to whether or not the UCC applied4 points Question 24In a bilateral contract, the consideration for each promise is __________.a completed actthe beginning of action in acceptance, even if it is not completean acknowledgementa return promisean agreement4 points Question 25Stewart, the owner of ABC Construction, agreed with Joan, the owner of XYZ Hotel, that he would complete renovations on her upscale hotel on the beach in Florida by October 1. The amount due to Stewart under the contract was $250,000. The contract contained a clause by which Stewart would pay Joan $50,000 for each day he was late on completing the project. Unfortunately, an unexpected earthquake shook the area, and while the earthquake did not damage the hotel itself, Stewart encountered significant difficulty in getting supplies due to the high demand for building material following the earthquake. Because he believed that traveling himself to other states to obtain supplies would be prohibitively expensive, he delayed the project for two weeks while waiting for local stores to have sufficient supplies available. Stewart finished renovations six days late. Joan told Stewart that she owed him nothing but that he owed her $50,000. Stewart told Joan that he was suing for the entire $250,000 because it was not his fault the earthquake delayed matters. Assuming the earthquake does not affect Stewart’s liability for damages, which of the following is true regarding the provision that he will pay $50,000 for each day he is late?It will be upheld based on freedom of contract.It will be upheld because the penalty per day is less than one half of the amount due for the job.It will be upheld as a stipulated amount.It will be struck because parties are prohibited as a matter of law from specifying damages.It will be struck as a penalty.4 points Save and SubmitClick Save and Submit to save and submit. Click Save All Answers to save all answers.
https://www.topgradeaccountants.com/wp-content/uploads/2020/07/LOGO-TG1.png 0 0 milton https://www.topgradeaccountants.com/wp-content/uploads/2020/07/LOGO-TG1.png milton2020-07-18 20:21:042020-07-18 20:21:04Question 1Which of the following is FALSE regarding rights of an assignee and assignor?Assignees ess